MONETARY M4

• SECTION 61. Guiding Principle. — The Monetary Board shall regularly assess price developments and outlook and, based on its analysis and evaluation of inflationary pressures, use its policy instruments to attain and maintain price stability.
• SECTION 62. Power to Define Terms. — For purposes of this article and of this Act, the Monetary Board shall formulate definitions of monetary aggregates, credit and prices and shall make public such definitions and any changes thereof.
• Action When Abnormal Movements Occur in the Price Level

  1. Monetary Board shall:

  2. Take such remedial measures as are appropriate and within the powers granted to the Monetary Board and the Bangko Sentral under the provisions of this Act

  3. Submit to the President of the Philippines and the Congress, and make public, a detailed report which shall include, as a minimum, a description and analysis of:

  4. The causes of the rise or fall of prices

  5. The extent to which the changes in prices have been reflected in changes in the level of domestic output, employment, wages and economic activity in general, and the nature and significance of any such changes

  6. The measures which the Monetary Board has taken and the other monetary, fiscal or administrative measures which it recommends to be adopted
• SECTION 64. International Monetary Stabilization. — The Bangko Sentral shall exercise its powers under this Act to preserve the international value of the peso and to maintain its convertibility into other freely convertible currencies primarily for, although not necessarily limited to, current payments for foreign trade and invisibles.
• SECTION 65. International Reserves. — In order to maintain the international stability and convertibility of the Philippine peso, the Bangko Sentral shall maintain international reserves adequate to meet any foreseeable net demands on the Bangko Sentral for foreign currencies.
• SECTION 66. Composition of the International Reserves. — The international reserves of the Bangko Sentral may include but shall not be limited to the following assets:

  1. (a) gold; and

  2. (b) assets in foreign currencies in the form of: documents and instruments customarily employed

  for the international transfer of funds; demand and time deposits in central banks, treasuries and

  commercial banks abroad; foreign government securities; and foreign notes and coins.