April 18, 2013

Forex Rules Once Again Eased by BSP

In its goal to address the surging capital inflows that lead to the currency's appreciation, the BSP once again rexales foreign exchange rules to encourage dollar purchases.

BSP Deputy Governor Nestor Espenilla, Jr. Said, "We want to keep our foreign exchange policies as reponsive as possible to the latest economic developments. These changes will simplify transactions between the banks and the general public and ecourage them to shift from the informal market into the banking system."

Some fo the changes include allowing more FX that may be sold over-the-counter by banks and other foreign exchange institutions without documentation from $60,000 to $120,000, and increasing the amount of FX that may be purchased using unspent pesos by tourists or balikbayans, also without documentary requirements, from $5,000 to $10,000.

Director of BSP international operations department, Patria Angeles said, since 2008, outflows have gone up due to liberalization from $800M at that time, to $1.48B as of October 2012. - Businessworld, Inquirer, Manila Bulletin, Philippine Star