ASEAN KEY DESTINATIONS
Philippine bank slows down peso
Among the changes is doubling of the present limit of over-the-counter forex purchases by residents without documentation for non-trade current account purposes to $60,000.
The BSP said this will encourage transactions through the banking system and away from the unsupervised foreign exchange market.
Monetary officials also hiked the present limit for departing non-resident tourists or balikbayan who convert their pesos at airports or other ports of exit to $5,000 from the current $200. The BSP said this will simplify procedures for transactions of tourists and balikbayan so that more foreign currency initially brought in can be reconverted without securing central bank approval.
The BSP also allowed residents to buy foreign exchange from authorized banks and forex corporations of up to $1 million from the present limit of only $100,000 to cover advance payment requirements for import transactions without central bank approval subject to standard documentary requirements.
Monetary officials said this will ease trade transactions and shorten turn-around time for imports.
The BSP also allowed prepayment of registered foreign currency loans of the private sector to be funded with foreign exchange from authorized agent banks and forex corporations without prior central bank approval. As a result, residents will have greater flexibility in managing their foreign obligations and finances.
Monetary authorities likewise increased the limit of $30 million to $60 million that a Filipino can invest in government securities and other Philippine debt papers issued offshore. This includes peso-denominated instruments to be settled in foreign currency so long as this will not exceed the prescribed limit for a year.
Additional measures include lifting the registration requirement for outward investments in excess of the $60 million limit. In lieu of registration, the remitter may report to the matter to the BSP.
These changes will take effect 15 days from publication in the Official Gazette or a newspaper of general circulation.
The peso is expected to trade within a range of 43.10 to 43.40 a day, and 42.90 to 43.50 a week
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