MANILA – The Bangko Sentral ng Pilipinas (BSP) now allows banks to sell foreign exchange to Filipinos who will send the funds to their relatives overseas.
In a virtual briefing on Thursday, BSP Gov. Benjamin Diokno said this is part of the latest foreign exchange reforms, under Circular No. 1124 dated Aug. 10, 2021, and which will take effect on Sept. 13, aimed at making sure that foreign exchange liberalization will be in line with a bid to increase the share of digital payments and electronic financial transactions in the country.
“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 added.
For one, the latest reform permanently allows the electronic submission of documents and the use of electronic signatures to help clients meet the documentary requirements for foreign exchange transactions.
The circular also supports the sale of foreign exchange to support government infrastructure projects and the funding of peso deposit accounts for foreigners who have peso receipts from trade transactions.
“These reforms are expected to facilitate FX (foreign exchange) transactions which, along with other key market reforms, may help contribute to the country’s continued economic expansion,” the central bank chief explained.
BSP started liberalizing its foreign exchange policies in the 1990s to promote a market-oriented environment and help sustain the economy’s expansion.
Diokno said this bid “is done by ensuring that the country foreign exchange regulatory framework remains appropriate to the needs of a dynamic and expanding economy.”(PNA)
