Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said they are currently reviewing several changes to foreign exchange (FX) policies to further improve access to FX, streamline procedures, and make use of technology for FX trades and sourcing.
“With the previous and recent reforms, the FX rules are already liberalized. But we won’t stop here,” said Diokno during his weekly press briefing.
He said BSP will continue to review the FX regulatory framework to do the following: facilitate access to FX resources of the banking system for legitimate transactions; further streamline procedures and documentary requirements for FX transactions; and further leverage on the use of technology.
The latest FX regulation amendments are in BSP Circular 1124 which eased the use of FX resources in the banking system, and it further streamlined and simplified the procedures and documentary requirements for FX transactions by allowing the electronic submission of documents and use of electronic/digital signatures.
“The BSP decided to permanently adopt the electronic submission of documents and use of e-signatures to facilitate submission by clients of documentary requirements as well as BSP processing of applications. This will support e-commerce transactions,” said Diokno.
He also said the new circular will facilitate FX sale for National Government’s infrastructure projects. “These reforms are expected to facilitate FX transactions which, along with other key market reforms, may help contribute to the country’s continued economic expansion,” he said.
The BSP’s latest changes to FX rules are also intended to facilitate electronic transactions and digital payments by allowing FX purchasers to provide alternative documents for trade and non-trade current account transactions. The end-goal is to support infrastructure development.
“While the rules are already liberalized, the BSP is continuously reviewing the FX regulatory framework of the country to ensure that these are aligned with prevailing market conditions and that the general public will have continued access to FX resources of the banking system for legitimate FX transactions,” said Diokno.