Title
Increase Members of Monetary Board EO 16
Law
Executive Order No. 16
Decision Date
May 9, 1986
Executive Order No. 16 amends the membership of the Monetary Board in the Philippines to include the Minister of the Budget, aiming to harmonize and coordinate budgeting with monetary, credit, and fiscal policies to alleviate the government's budgetary constraints.
A

Composition and Powers of the Monetary Board

  • The Central Bank's powers and functions are exercised by a Monetary Board.
  • The Board is composed of seven members with specific roles and appointments.

Members of the Monetary Board

  • Governor of the Central Bank: Chairman, appointed for six years by the President; Senior Deputy Governor acts as Chairman in his absence.
  • Minister of Finance: Member with the right to designate a deputy to attend meetings if unavailable.
  • Director-General of the National Economic and Development Authority (NEDA): Member who may designate a deputy director general as an alternate.
  • Chairman of the Board of Investments: Member who can appoint a governor of the Board as an alternate.
  • Minister of the Budget: Newly added ex-officio member; can designate a deputy as alternate.
  • Presidential appointee: In place of the NEDA Director-General or Board of Investments Chairman, the President may appoint heads of other financial or economic government agencies.
  • Two part-time private sector members: Appointed by the President for four-year terms; the first appointee's term is staggered at two years.

Appointment Criteria and Procedures

  • The President appoints members based on integrity, experience, and expertise.
  • Alternate representation is permitted for most government officials to ensure continuous participation.

Effectivity

  • The Executive Order takes effect immediately upon issuance.

Legal Authority

  • Issued by President Corazon C. Aquino under her powers vested by law.
  • Solidifies the structural composition of the Monetary Board to enhance fiscal and monetary policy coordination.

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