BSP sets new rules on forex transactions

 Economy
Nov 072013
 

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) introduced yesterday new rules on foreign exchange (FX) transactions as it continues to align the framework with current economic conditions.

In a statement, the central bank said it is now allowing the prepayment of BSP-registered short-term loans although subject to documentary requirements.

At the same time, the BSP said it has dropped banks’ submission of documents to support reports on importations.

The central bank also lifted its requirement to have private sector loans to be granted by banks’ Foreign Currency Deposit Units or Expanded (FCDUs) approved by the BSP. These loans, however, should be those directly funded from or collateralized by offshore loans or deposits of the lending bank.

The last amendment in FX rules pertain to the “clarification of the prescriptive period for filing of requests for BSP registration of foreign direct investments and rules on cross currency swaps.”

The central bank continues to assess its guidelines for FX transactions to make them suitable to current economic conditions.

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“The BSP will continue to review rules on FX transactions and make amendments thereto as necessary to ensure that the FX regulatory framework is appropriate considering current economic conditions,” the central bank said.

Last month, the BSP eased restrictions on the movement of foreign-currency denominated funds to and from the country in preparation for the integration of Southeast Asian nations.

The BSP on Oct. 18 issued Circular 815, which amended foreign exchange regulations in facilitating cross-border investments.

These rules basically allow non-residents to register with the central bank in order to exchange their peso-denominated income and repatriate these funds.

The measures were crafted in consideration of non-residents planning to list or investing in securities in the local stock market who previously tap the secondary market to have their dividends and income in peso exchanged to another currency.

BOP posts $465-M surplus in Sept

 Economy
Oct 182013
 
BOP posts $465-M surplus in Sept

MANILA, Philippines – The country’s balance of payments (BOP) position reverted to a surplus in September amid the return of foreign portfolio and direct investments into the country, the Bangko Sentral ng Pilipinas (BSP) reported yesterday. The country posted a surplus of $465 million in September, a turnaround from the $318-million deficit in August. The latest surplus, however, was 38 percent lower than last year’s $751-million surplus. “BOP position for September… (was) on account of continued inflow of foreign exchange from different sources particularly foreign portfolio and direct investments,” BSP Deputy Governor Diwa C. Guinigundo said in a text message. “Data for exports, remittances and BPO (business process outsourcing) receipts are still not available although initial indicators show their continued strength,” he added. “These inflows were supported by BSP investment income from abroad and NG (national government) deposits of FX (foreign exchange) with the BSP,” Guinigundo further said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The BoP position summarizes a country’s transactions with the rest of world. This includes exports, imports, foreign direct and portfolio investments, other investments, and even remittances from Filipinos abroad. A surplus means more funds went into the country, while a deficit means otherwise. In the nine months to September, the country’s BoP surplus declined 34 percent to $3.824 billion from $5.831 billion a year ago. The central bank expects a surplus of $4.4 billion in the country’s BOP for this year. Guinigundo earlier said this projection is under review in light of latest Read More …

BSP eases foreign exchange rules anew

 Economy
Apr 182013
 
BSP eases foreign exchange rules anew

MANILA, Philippines – Foreign exchange (FX) rules were relaxed anew on Thursday in a bid to ease business transactions and encourage outflow of dollars amid a strengthening peso. The Bangko Sentral ng Pilipinas (BSP) unveiled new foreign exchange liberalization measures “to keep policies responsive to current economic conditions,” Deputy Governor Nestor Espenilla Jr. said. “The new rules aim to further simplify FX transactions of the general public with banks,” Espenilla told reporters in a briefing. Patria Angeles, director of BSP international operations department, said the measures may “ease pressure” on the peso, which was Asia’s second best performer versus the greenback last year. The peso closed three centavos stronger at 40.22 to a dollar Thursday. Under the new regulations, foreign money allowed to be purchased by residents without the need for BSP approval was doubled to $120,000 from $60,000. Espenilla said this is to cover “rising costs” in studying abroad, medical bills, or travelling. In the same manner, foreigners and balikbayans departing the country may now exchange their remaining pesos up to $10,000 or the equivalent amount in other currencies. The original cap to avoid BSP clearance was set at $5,000. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Expatriates and foreign students living in the Philippines may now also open peso bank accounts using their earnings here. “Previously, opening of bank accounts for non-residents may only be done by exchanging your foreign money to pesos and then using that pesos to open the account,” said BSP managing director Read More …