BSP relaxes foreign exchange rules
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has amended foreign exchange regulations, further relaxing restrictions on transactions of foreign currency-denominated funds.
In its Circular No. 815 Series of 2013 posted on its website, the BSP said foreigners in the country who sell Philippine stocks can now exchange their peso earnings from the sale to dollars in banks and remit them abroad.
"Under the revised rules, non-resident investments in PSE (Philippine Stock Exchange)-listed equity securities issued by non-residents may now be registered to allow outward remittance of capital and income on these investments using FX from the banking system," BSP Deputy Governor Diwa Guinigundo said.
"In addition, the non-resident issuers of such instruments will also be able to outward remit the FX equivalent of the peso proceeds from the sale of their securities through the PSE," he added.
The BSP said it's the first time they're issuing a directive that covers these transactions, but it's the latest in a series of forex liberalization moves meant to smoothen dollar outflows.
While that consequently could weaken the peso, the BSP points out easier forex rules encourage more foreign investments.
"The new FX liberalization policy aims to facilitate cross border investment transactions consistent with our commitments under the ASEAN (Association of Southeast Asian Nations) Economic Blueprint 2015," Guinigundo said.
Wilhelmina Mañalac, managing director at BSP's international sub-sector, said the rules were made more flexible to make way for capital market growth.
The new rules will take effect 15 days after its complete publication in a newspaper of general circulation.