Philippine central bank further eases forex rules

A money changer counts Philippine pesos in Manila in file photo. (The STAR/KJ Rosales)

MANILA — The Philippine central bank on Thursday announced revised rules aimed at liberalizing access to foreign exchange from banks and streamlining procedures for FX transactions.

The new rules, part of a wider programme of foreign exchange liberalization that the Bangko Sentral ng Pilipinas has rolled out in the last few years, will allow for easier flows of foreign investments in and out of the economy.

“The reforms will give investors greater flexibility to manage their investments and cash flows,” it said in a statement.

The amended rules lifted prior central bank approval requirement for the purchase of foreign exchange beyond the threshold amount.

They also expanded the definition on banks that are eligible to register investments on behalf of the central bank.

The BSP also simplified paperwork of banks by allowing them to submit supporting documents electronically.

The new rules will take effect 15 banking days after publication in a newspaper with general circulation, the central bank said in a statement.

Policymakers have been relaxing foreign exchange rules in recent years to deepen and develop the Philippine capital market. —Reporting by Karen Lema; Editing by Simon Cameron-Moore

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