THE Bangko Sentral ng Pilipinas (BSP) is working to lift the requirement of the Bangko Sentral Registration Document (BSRD) for foreign portfolio investments, a Monetary Board member said yesterday.
“I believe that a draft circular is already being exposed to the market and I am excited to receive the final circular after the industry’s comments are taken into consideration,” Monetary Board member Annie Aquino said in her keynote speech at ING Bank Manila’s 2024 Annual Briefing.
The BSRD is a document issued by the BSP to allow non-resident investors to buy foreign exchange (FX) from the local banking system for the repatriation of their capital and remittance of earnings.
“Yes, the possibilities are now endless – especially for those processes that have outlived their purpose,” Aquino said.
Asked when the BSP will lift the requirement for the BSRD, Aquino said, in an ambush interview, “Trust me, it will be finished this year.”
She clarified, however, that registration for loans in foreign direct investments currently will still require the BSRD.
“But perhaps, who knows, this will be addressed at some future time,” she said.
Aquino told the forum to expect more reforms in the field of foreign exchange.
Portfolio investments are sometimes referred to as “hot money” because of the ease with which they can enter and exit an economy.
Most foreign portfolio investments go to PSE-listed securities and in peso government securities and other instruments. (ABS-CBN News)
