BSP raises cap on amount of peso allowed for wire transfer

The Bangko Sentral ng Pilipinas has raised the maximum amount of Philippine money that can be transferred electronically overseas to P50,000, as part of the further liberalization of foreign exchange rules.

From P10,000 previously, the BSP increased fourfold the amount of local currency that a person may electronically transfer without prior authorization from the BSP, Circular Letter No. 922 issued by Deputy Governor and officer-in-charge Vicente S. Aquino on Aug. 23 showed.

The BSP defines “electronic transfer” as “a system where the authority to debit or credit an account (bank, business or individual) is provided by wire, with or without a source document being mailed to evidence the authority.”

The BSP earlier announced that the Monetary Board had approved the hike in the amount of Philippine currency allowed to be brought into and out of the country to P50,000 from P10,000 previously.

This was aimed “to provide greater convenience to travelers to and from the Philippines, and allow settlement of obligations in jurisdictions outside the Philippines where the Philippine peso is accepted as a currency of settlement,” the BSP said.

The BSP earlier said the new rules would take effect on Sept. 15.

However, the BSP clarified that “the peso amount of the International Passenger Service Charge (lPSC) refunded to outbound exempt passengers will not be included in the limit during the implementation of the said IPSC refund.”

Passengers exempted from payment of airport tax, travel tax and other travel-related fees include overseas Filipino workers as well as Philippine Sports Commission officials, coaches and athletes who will join sports competitions abroad, “provided that refund is made prior to departure at airports or other ports of exit,” according to the BSP.

The BSP announced separately on Friday that the guidelines to operate the liquidity facility under its cross-border liquidity arrangement (CBLA) with the Bank of Japan (BOJ) had already taken effect.

In February last year, the BSP and the BOJ had agreed to establish the CBLA to enhance financial stability in the country.

“The establishment of the facility allows banks operating in the Philippines, including Japanese banks, to access Philippine peso liquidity against their Japanese yen holdings during emergency situations,” the BSP said.

“This collaboration reinforces BOJ and BSP’s continued commitment to support the long-standing economic and financial relationship between Japan and the Philippines,” it added.