Nov 072013
 
BSP sets new rules on forex transactions

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. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “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 Read More …