• By The Financial District

BSP Bares Forex Reforms

The Bangko Sentral ng Pilipinas (BSP) said the latest set of foreign exchange (FX) reforms will further promote an environment conducive to businesses and investments and is expected to help contribute to the country’s economic growth.

Photo Insert: BSP is adjusting the Forex regulatory framework to the times.

“The reforms are in line with the BSP’s commitment to maintain an FX regulatory framework that is responsive to the needs of a dynamic and expanding Philippine economy,” said BSP Governor Benjamin E Diokno.

Recent FX reforms under Circular No. 1124 aim to promote greater ease in the use of FX resources of the banking system, and further streamline and simplify procedures and documentary requirements for FX transactions by allowing, among others, electronic submission of documents and use of electronic/digital signatures.

These reforms also intend to facilitate electronic transactions and digital payments by allowing FX purchasers to provide alternative documents for trade and non-trade current account transactions.

Moreover, these aim to support the infrastructure development program of the National Government by lifting the prior approval requirement for Engineering, Procurement, and Construction contracts.

All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

“While the rules are already liberalized, the BSP is continuously reviewing the FX 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 FX resources of the banking system for legitimate FX transactions,” added the Governor.

Banking & finance: Business man in suit and tie working on his laptop and holding his mobile phone in the office located in the financial district.

The recent FX reforms are also seen to promote capital market development by allowing funding of peso deposit accounts of non-residents with peso receipts related to loans and investments, among others; and lifting the prior approval requirement for derivatives transactions of non-bank government entities.


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