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Friday, March 29, 2024

BSP plans to increase volume of securities

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The Bangko Sentral ng Pilipinas plans to increase the volume of its securities issuance amid strong demand, a top official said over the weekend.

The BSP, in its maiden issuance on Friday, awarded P20 billion 28-day BSP bills in full. The bills were oversubscribed, as total tenders reached P43.4 billion, or 2.2 times the offer volume.

BSP Deputy Governor Francisco Dakila said the results of the auction reflected robust demand, with banks pricing the 28-day BSP bills relatively close to the 28-day term deposit facility rate.

“Going forward, the BSP will gradually adjust auction volumes depending on market response and consistent with liquidity forecasts,” Dakila said.

BSP Governor Benjamin Diokno earlier said the securities issuance formed part of its initiative to shift to more market-based monetary operations.

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He said the inclusion of securities issuance in the standard monetary operations of the BSP provides an additional instrument for managing liquidity in the financial system and support the implementation of monetary policy under the Interest Rate Corridor framework.

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