BSP eases rules on foreign exchange


By Rose de la Cruz


The Bangko Sentral ng Pilipinas announced Friday that it had further relaxed some rules on foreign exchange to further open up the economy through a more liberal policy environment.


In a press release, the BSP said the reforms aim to promote greater ease in the use of FX resources of the banking system for legitimate needs by relaxing further FX rules and streamlining procedures and requirements.


BSP Governor Nestor Espenilla said this latest thrust represents the BSP’s goal to ensure greater and ease of access to FX resources in order to further support economic activities.


He added that this was also done with due recognition to the continuing volatility in the external financial markets.


The new policy reforms include the following: I) The lifting of the prior BSP approval requirement for purely private sector loans (that is, those without guarantee from/exposure of any public sector entity), such that these loans now only need to be registered with the BSP to allow use of banking system resources for loan payments.


Requirements to support applications for registration and purchase of FX from the banking system were also substantially trimmed down, and the form of documents liberalized, including allowing the use of scanned Application to Purchase FX form.


The revised rules aim to further facilitate financing of critical and projects and activities that can contribute to a more vibrant business climate conducive to growth.


2) The opening of a temporary window for six months during which purely private sector loans/borrowings obtained without the required BSP approval requirement and are recorded in the obligor's books as of the date of the implementing circular can be applied for registration following the guidelines set for the purpose.


The BSP registration of these accounts will qualify the outstanding balances of the obligations to be paid on scheduled due dates using FX resources of the banking system.


Before, these loans can only be settled with the borrower's own FX or with fund sourced outside the banking system.


The initiative is intended to further widen the coverage of the BSP's records on the country's external obligations to support policy review and formulation, analysis and statistical needs.


The implementing circulars will take effect on January 15, 2018.


The Governor emphasized that even as the rules are further liberalized, banks are expected to continue to adopt safe and sound practices in their operations.



This liberalization move is expected to further strengthen BSP's database and its ability to adopt timely and necessary prudential measures to address any perceived emerging concerns.

Like us in Facebook

facebook like box joomla


Latest News

Empowering MSMEs in Dinagat Island province

  By Rose de la Cruz   Bangko Sentral ng Pilipinas is soon signing a memorandum of agreement with the local officials of the island province of... Read More...
Empowering MSMEs in Dinagat Island province

  By Rose de la Cruz   Bangko Sentral ng Pilipinas is soon signing a memorandum of agreement with the local officials of the island province of... Read More...
Bong still unsure of Senate run

Should he stay or should he go?  This is the question that Special Assistant to the President Christopher “Bong” Go is trying to answer and... Read More...
IMAGE In the know: Solar Philippines

Solar Philippines is currently the country’s – and Southeast Asia’s – largest solar-energy company. Founded in August 2013 by Leandro... Read More...
Wrong Dream Girl and Other Laughs

Wrong Dream GirlA FROG telephones the Psychic Hotline. His Personal Psychic Advisor tells him, "You are going to meet a beautiful young girl who will... Read More...
Confession Code and other laughs

Confession Code AN old priest who became sick of all the people in his parish who kept confessing to adultery said one Sunday, in the pulpit,"If I... Read More...

KAMAKAILAN ay tumawag ng atensyon ang plano ni Sen. Manny Pacquiao na maghain ng panukalang batas na naglalayon na isama bilang bahagi ng curriculum... Read More...

SUPORTADO nang ibat-ibang consumer group kabilang na ang Institute for Consumer Research and Empowerment (ICORE) ang panukalang dapat putulin na ang... Read More...

Our Guests

This week5418
This month16506

Visitor Info

  • Your IP:

Who Is Online


Sunday, 23 September 2018
© 2016 OpinYon News Magazine Online. All Rights Reserved.

Please publish modules in offcanvas position.