system, robust external payments position, and a manageable fiscal deficit. the philippine economy has the essential elements to post a strong recovery this year. moving forward, the bsp ’ s actions and policy thrust will continue to be anchored on its core mandates of promoting price and financial stability. 1 / 2 bis central bankers'speeches the bsp will remain vigilant over the current inflation dynamics and operating environment with a forward - looking perspective to ensure that the monetary policy stance supports economic recovery and addresses any risks to our price stability mandate. it addition, bsp will intensify its monitoring and surveillance over its supervised institutions to ensure that they remain responsive to emerging risks and to promote the continued soundness, stability, resilience, and inclusivity of the banking system. lastly, the bsp will continue to adopt policies that will strengthen the economy ’ s resilience to external shocks. these will include maintaining a market - determined exchange rate, sustaining a comfortable level of reserves, and keeping the country ’ s external debt manageable. i said this before, and i ’ ll say it again : we should not let this unprecedented crisis go to waste. let us learn from it. let us all continue to discover and tap into our inner strengths. our shared fortitude as a nation will enable us to withstand all adversities and come out of this pandemic as economic champions. may our award - winning members never tire of leading the capital market in conceptualizing and implementing new and bold strategies for the industry and for our country. continue to reform, innovate, and transform. again, congratulations to our awardees and to the pds group. 2 / 2 bis central bankers'speeches

agreements. they agreed to establish a monetary order based on fixed exchange rates, together with a process to realign exchange rates in the event of fundamental imbalances. important institutions, such as the international monetary fund, the world bank, and the general agreement on tariffs and trade, were also established. but since the 1970s, many economies have adopted flexible exchange rate regimes. in general, these regimes have been able to coexist with fixed exchange rate regimes, and to do so relatively well in a world of open capital markets. however, the success of this coexistence has depended on countries following " the rules of the game " appropriate to the exchange rate regime they have chosen. what do i mean by " the rules of the game "? for countries with a flexible exchange rate, this means that authorities should actually let their currency float freely. and for countries with a fixed exchange rate, this means that authorities need to run appropriate policies in order for the fixed exchange rate to be sustainable. in particular, countries with a fixed exchange rate and a current account surplus should not " sterilize " the foreign exchange interventions required to fix the value of their currency. by " sterilize, " i mean offsetting the effect of interventions on the domestic money supply. recently, problems have arisen from countries not playing by the rules of the game. certain asian economies have been stifling the inflationary effects of their interventions and, in the process, building up massive amounts of foreign reserves. when countries offset the effects of intervention, they delay domestic economic adjustment. they also delay global adjustment. just as worrying is the fact that such intervention is provoking threats of protectionist measures in certain political quarters. such wrong - headed measures could choke off the growth of international trade that has led to rising incomes worldwide. what is needed today is a renewal of the international monetary order and of the spirit of international co - operation that led to the original agreements. the global economy has changed enormously since the end of world war ii. but the danger posed by global imbalances is a clear reminder that there is still a need for a coherent international monetary order - and a need for countries to play by the rules. in this context, it is also very important that all countries work to protect and enhance the free flow of goods and services by finding a way to break the stalemate at the doha round of trade talks and by strengthening the world trade organization. we all need to support these efforts and