BANGKO Sentral ng Pilipinas will raise for the fifth time the weekly volume in the term deposit auction by another P20 billion from P110 billion to P130 billion beginning Nov. 2 in a bid to effectively siphon off excess liquidity in the financial system.
Data on the BSP website showed that the seven-day deposits would continue to account for P10 billion, but deposits with a month-long tenor would be increased to P120 billion from P100 billion.
Bangko Sentral had already increased the auction volume four times since June”•from the original P30 billion to P50 billion, P70 billion, P90 billion, and P110 billion due to oversubscription.
Bangko Sentral Governor Amando Tetangco Jr. said there could be room for further adjustments in the auction sizes in future auctions.
