To improve access to foreign exchange (FX) resources in the country, the Bangko Sentral ng Pilipinas (BSP) has amended its FX regulations covering foreign investments with a transitory period of until Sept. 30, 2024.
The BSP said over the weekend that the revised FX rules will further facilitate access to FX resources of authorized agent banks (AAB) or their subsidiary or affiliate FX corporations for “legitimate transactions and streamline documentary requirements, procedures and reporting.”
“This is part of the continuing efforts of the BSP to review the FX regulatory framework and support the country’s thrust to promote a policy environment conducive to sustained inflow of investments to help foster economic development and growth,” the central bank added.
BSP Governor Eli M. Remolona Jr. signed the 12-page Circular No. 1192 (“Amendments to foreign exchange regulations covering foreign investments”) last April 11, 2024.
The circular covered non-trade current account transactions; foreign merchandise trade transactions; financial account transactions; and other general provisions such as reports and penalties.
Meanwhile, one of the major amendment in the circular is allowing foreign investments registerable with AABs such as non-resident investments in government securities and securities listed at the Philippine Stock Exchange to be registered upon reporting by the AAB to the BSP, subject to compliance with the applicable guidelines under Appendices 10.B and 10.C of the Manual of Regulations on Foreign Exchange Transactions, as amended.
Two other major amendments include: dispensing with the issuance of BSP registration documents for foreign investments registered with the BSP through the AABs; and streamlining the reporting forms/procedures pertaining to these foreign investments.
“A transitory period until 30 September 2024 will be provided to allow registering authorized agent banks to make the necessary preparations and adjustments to their systems and processes to ensure compliance with the new reporting guidelines,” said the BSP.
The central bank has been reviewing its policy on the cross-border transfer of local and foreign currencies as well as amendments to other FX regulations such as reporting guidelines, among others.
Amending the FX rules from time to time ensure that it remains appropriate to the needs of a dynamic and expanding local economy. 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 13 rounds of FX policy liberalization.