Policy purpose and directive frame
- The Letter of Instructions orders measures to safeguard the gold, other metals and copper industries.
- It is premised on the international price of gold, copper, and other minerals reaching extremely low levels.
- It is premised on the sale of Philippine gold and copper at unreasonably low prices jeopardizing mining companies and their employees.
- It is premised on the jeopardy to the national resource patrimony.
Mandate to Executive Committee
- The Executive Committee must review the terms and conditions of the Copper Stabilization Fund.
- The Executive Committee must study and adopt measures necessary to fully support gold, other metals, and copper producers.
- The Executive Committee must study and recommend to the President the budgetary resources needed to support the gold, other metals and copper program beyond what the Central Bank can extend.
Central Bank gold purchases mandate
- The Central Bank must increase its holdings of gold in the international reserve.
- The Central Bank accomplishes the reserve increase by acquiring an increased amount of primary and secondary gold production.
- The mandate focuses on gold held in the international reserve through acquisition of primary and secondary gold production.
Central Bank financing and export rediscounting
- The Central Bank may finance gold, other metals, and copper production.
- Financing must be on the basis of the current prices of the relevant metals.
- Financing must be done at an export rediscounting rate determined by the Monetary Board.
- Financing is limited to up to such maximum amounts as may be warranted by domestic credit expansion constraints.