The central bank is reviewing its policy on the cross-border transfer of local and foreign currencies and may further relax the amount of currencies that can be brought into and out of the Philippines.
Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno has confirmed ongoing review and assessment of the rules on the transfer of currencies.
“Amendments to the rules on cross-border transfer of local and foreign currencies as well as to the amendments to the other foreign exchange (FX) regulations covering reporting guidelines, among others, are in the pipeline,” said Diokno.
At present, the BSP allows a person to “freely bring into or take out” of the country or electronically transfer up to P50,000.
The BSP also allows a person to carry up to $10,000 or its equivalent in other foreign currencies as travelers’ checks, other checks, drafts, notes, money orders, or bonds.
In excess of the P50,000 limit, an individual will have to get the BSP’s written authorization first to bring into or take out cash or other forms of cash out of the country. Meantime, foreign currencies more than $10,000 are allowed but it requires a foreign currency declaration form from the Bureau of Customs desks in all of the international airports and seaports.
If a person has to have an amount that is more than P50,000, it should only be because of these reasons: testing/calibration of money counting/sorting machines; numismatics (collectors of currency); and educational purposes.
According to Diokno, the BSP “continuously reviews the foreign exchange (or FX) regulatory framework to ensure that it remains appropriate to the needs of a dynamic and expanding Philippine economy.”
Diokno said that ongoing FX reforms are intended to promote a “vibrant, domestic business activities” as well as to “broaden financing options including through portfolio and risk diversification by investors”.
He said that updating FX rules will also support regional integration with regional and global markets, and enhance data capture on FX transactions.
The BSP since 2007 has approved and completed 12 rounds of FX policy liberalization.
The latest circular issued was BSP Circular No. 1134 approved last December 28, 2021, which amended the foreign currency deposit system. The BSP streamlined the rules on lending to the regular banking unit by foreign currency deposit units or FCDUs. It will improve banks’ flexibility in managing their foreign currency funds.
Diokno said the recently-issued circular will make banks more efficient and flexible in handling their FX liquidity cash management. It is the second phase of the central bank’s staggered reform agenda for FCDUs.