MANILA, Philippines —The Bangko Sentral ng Pilipinas (BSP) plans to finalize within the year a policy framework that simplifies the requirements for nonresident investors to buy foreign exchange from the local banking system, a top official said.
Anita Linda Aquino, member of the policymaking Monetary Board, said she had recommended late last year the lifting of the Bangko Sentral Registration Document (BSRD) as submission requirement for foreign portfolio investors.
“I understand that the custodian banks have already been consulted, and I can sense the disbelief that something like this is feasible,” Aquino said in her speech during a forum organized by the ING Bank at Shangri-La at The Fort Hotel in Taguig.
“I believe that a draft circular is already being exposed to the markets. And I am excited to receive the final circular after the industry comments are taken into consideration,” she added.
Access to foreign exchange
But the BSP official clarified that registration for loans and foreign-directed investments currently would still require the BSRD, but hinted that this could also be lifted too at some future time.
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BSRD is a document issued by the BSP which allows nonresident investors to buy foreign exchange from the banking system for the repatriation of their capital and remittance of earnings.
In a follow-up interview with reporters on the sidelines of the event, Aquino said that this circular would be finished this year.
The BSP official also said that the rationale for the measure would be to lessen the documentary requirements and thus ease the burden on foreigners to source foreign exchange. The overall goal is to entice them to do more business in the country. —Alden M. Monzon INQ