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

2019 budget pegged at P3.4 trillion

By Rose de la Cruz     After last week’s release of the Budget Call for 2019 under National Budget Memorandum No. 129, representatives from... Read More...
FDIs surge in October 2017 to $2B from $670M

  By Rose de la Cruz   Foreign direct investment net inflows rose threefold in October 2017 to $2 billion from $670 million in the comparable... Read More...
Comelec control urged for narco-infested LGUs

  By Francisco Benjamin Garcia   Rep. Bernadette Herrera-Dy, chairman of the committee on public information at the lower house has urged that... Read More...

WHILE the modernization of public utility vehicles has always been in the wish list of past administrations, thought of as a solution to the... Read More...
IMAGE Honest Hubby and Other Laughs

Honest Hubby?THERE was this old lady who was caught shoplifting. On court day her husband accompanied her as she faced the judge. "Why did you... Read More...
IMAGE All about women and wives and other laughs

All about women and wives I married Miss Right. I just didn’t know her first name was Always. ***** Marriage is a three-ring circus: engagement... Read More...

TULUYAN nang tinuldukan ni Presidente Rodrigo Duterte ang anumang pagtatangka ng ibang mga grupo at sektor na buhaying muli ang usapang... Read More...

Guhit ni Ed Rompal INIULAT ni Senador Sonny Angara na nagkasundo na ang congressional bicameral conference committee sa limang probisyon na... Read More...

Our Guests

This week4833
This month15929

Visitor Info

  • Your IP:

Who Is Online


Thursday, 18 January 2018
© 2016 OpinYon News Magazine Online. All Rights Reserved.

Please publish modules in offcanvas position.