The Bangko Sentral ng Pilipinas has served as the Philippines’ monetary authority since it replaced the old central bank in 1993.
It was created by Republic Act No. 7653, the New Central Bank Act, and began operations on 3 July 1993. The law followed economic and financial difficulties that had affected the former Central Bank of the Philippines. The new institution was given greater fiscal and administrative independence.
The Bangko Sentral ng Pilipinas conducts monetary policy, supervises banks, manages foreign reserves and issues Philippine currency. Its headquarters are in Manila, and its official name is commonly abbreviated BSP.
The BSP is often confused with the former Central Bank of the Philippines, which operated from 1949 until 1993. Commercial institutions such as the Philippine National Bank and Bank of the Philippine Islands are separate banks, not the country’s central bank.