BSP’s government securities purchasing window to be made a regular facility

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The Bangko Sentral ng Pilipinas (BSP) is set to reconfigure its government securities (GS) purchasing window into a regular facility from a crisis intervention measure, in line with the COVID-19 pandemic exit measures.

At a virtual briefing on Monday, BSP Governor Benjamin Diokno said the reconfiguration of the GS window will make it a standard liquidity instrument under

Diokno was referring to the interest rate corridor which seeks to improve monetary policy and help limit interest rate volatility. The share of outstanding placements in BSP Securities accounted for 35% of the total amount of system liquidity absorbed by the BSP through its liquidity management facilities as of end-May 2022.will then be reconfigured to be consistent with the IRC framework“Consistent with the overall monetary strategy as guided by liquidity forecasts, the GS window will be converted from being a standing facility into an active operation at the discretion of the BSP,” Diokno said Monday.

 

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