BSP streamlines foreign exchange regulations

The Bangko Sentral ng Pilipinas (BSP) on Thursday unveiled foreign exchange reforms seeking to simplify procedures and streamline documentary requirements for transactions.

In a virtual briefing, BSP Governor Benjamin Diokno said the central bank decided to allow the foreign exchange sale by banks without its approval for various transactions involving e-commerce market participants.

“This ensures that our policies are attuned with international and domestic market developments and responsive to the needs of the economy amid the prevalence of e-commerce transactions,” he told reporters.

“The reforms will also further facilitate trade and non-trade transactions of Philippine residents with non-residents,” he added.

Under the revision, stakeholders will be given greater flexibility as they are allowed to submit alternative or equivalent documents for foreign exchange sale by banks for settlement of trade and non-trade current account transactions.

It also allowed the sale of foreign exchange by banks for living allowance or medical expenses of dependents abroad, and the funding of peso deposit accounts of non-residents with peso receipts for trading transactions, foreign loans, and investments.

The BSP also permanently adopted the electronic submission of documents and the use of e-signatures, in a bid to facilitate submission by clients of documentary requirements, and the central bank processing of applications.

“These reforms are expected to facilitate foreign exchange transactions which, along with other key market reforms, may help contribute to the country’s continued economic expansion,” Diokno said.

The reforms were issued under Circular No. 1124 dated August 10, 2021, and will take effect on September 13, 2021.

“While the rules are already liberalized, the BSP is continuously reviewing the foreign exchange 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 foreign exchange resources of the banking system for legitimate foreign exchange transactions,” said Diokno.—AOL, GMA News