The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) has approved further amendments to the Manual of Regulations on Foreign Exchange Transactions (FX Manual).
In a statement, BSP Governor Amando Tetangco Jr. said that the amendments to the manual are part of continuing efforts to promote an appropriate regulatory framework for foreign exchange transactions.
“These measures will broaden investment options available in the domestic capital market and allow freer capital mobility,” the BSP stated.
The central bank said that the amendments now allow registration by custodian banks of nonresident investments in the Philippine Stock Exchange (PSE)-listed equity securities of nonresidents.
In addition, allowing with prior BSP approval, the conversion to foreign exchange by nonresident issuers of the peso proceeds from the onshore sale of their PSE-listed equity securities.
Furthermore, the amendments also allow prepayments of BSP-registered short-term loans, subject to standard documentary requirements of foreign exchange purchases.
“This will facilitate access to the banking system for legitimate transactions requiring payment in foreign exchange,” it added.
Tetangco also affirmed the central bank’s commitment to maintaining a safe and sound financial system, a stable foreign exchange market and monetary policy supportive of economic growth.
He said that the clarifications for the manual have also been made for greater clarity of rules and better understanding by the public.