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April 24, 2024

BSP further strengthens its currency forecasting capabilities

The Bangko Sentral ng Pilipinas (BSP) continues to strengthen its currency forecasting methods and capabilities, leveraging rapid technological advancements in the global payment system.

“The BSP continuously develops its currency forecasting methods and capabilities. This is in line with the BSP’s broader efforts to promote price stability and maintain the integrity of Philippine currency,” outgoing BSP Governor Benjamin Diokno said.

To ensure that its currency forecasting capabilities are aligned with global best practices, the BSP carries out periodic reviews of its forecasting models; and conducts specialized learning and development programs on currency forecasting and mandatory econometrics training for its forecasting team.

As the sole issuer of Philippine currency, the BSP is expected to provide undisrupted, responsive, and strategic currency services throughout the entire cash cycle, which begins with forecasting demand.

The BSP recently organized a learning session on “Currency Forecasting in the Age of Digital Transformation” with speakers from the Bank of Thailand and Reserve Bank of Australia discussing shared experiences on currency matters.

The webinar also covered similarities in forecasting approaches among central banks and the common goal of finding the right balance between physical and digital cash usage to ensure availability of various payment options.

It was noted during the webinar that there is continuous growth in currency in circulation, driven by the demand for higher denomination banknotes.

The currency in circulation continued to rise amid the pandemic and despite increasing digitalization of retail payment systems.