This study examines the changing financial environment in the money market operation in the Philippines from 1979 to 1984. Specifically, it also seeks to find answers to the following questions: (1) How did the crisis of confidence affect the borrower/lender and the financial intermediaries? (2) Is there a difference between the role of money market in the past years and its role in the light of this particular financial environment? (3) What are the key problem areas that needs necessary improvement in order to attain normal market operation? (4) How did the CB or government interest rate on this IOU affect the sales volume of private corporations commercial papers? (5) Do rigorous procedures and high registration fees on commercial papers of private corporations hinder the smooth flow of Money Market Operation? (6) What impact has excessive CB's CBCI, Treasury Bills floatation on the volume of money market transactions? (7) Volumewise, why is it that the four foreign backed money market departments like City Bank, BA, Chartered Bank, etc. still operate in full swing while the local incorporated money market departments operates in skeleton form? (8) Why are there pretermination, no roll-over/retention of placement of contracts after maturity of the first contract by corporate lenders/borrowers? and (9) What overall reform program for redesignation of the money market, with a particular stress on the role of monetary authorities could best achieve a normal market activities?