COVID 19 PANDEMIC: BSP MOVES TO STABLIZE ECONOMY
The Bangko Sentral ng Pilipinas (BSP) has readied emergency measures to counter the disastrous effects of Covid 19 on the economy by providing adequate liquidity to the system.
Citing volatility in the system on account of the Covid 19 pandemic, the BSP sought to quell what it cited as the “uncertainty over the impact of the health crisis (that) continues to dampen market sentiment. “
This BSP arsenal includes buying P300 billion of government securities from the Bureau of Treasury, easing of the single borrower’s limit rule and the purchase of government securities held by banks in the secondary market.
“By ensuring sufficient liquidity in the financial system, the BSP aims to assist our financial intermediaries in responding to the needs of Filipino households and businesses amid these challenging times,” the BSP said. The measures, BSP said, are meant to shore up market confidence to ensure the proper functioning of the financial market and “ prevent serious repercussions on the economy over the medium term.”