BSP Circular No. 1192 Series of 2024: Bangko Sentral ng Pilipinas Amends Foreign Exchange Regulations Covering Foreign Investments

Through Bangko Sentral ng Pilipinas (“BSP”) Circular No. 1192 (“Circular”), the Monetary Board approved amendments to the Regulations Governing Foreign Exchange (“FX”) Transactions which lays out the new rules concerning FX transactions, and further amending the Manual of Regulations on Foreign Exchange Transactions (“MORFXT”). A few pertinent amendments include:

• The MORFXT is updated to state that applications for approval/registration of foreign/foreign currency loans/borrowings, inward investments and other FX transactions filed with the BSP-International Operations Department are free of charge.
• Authorized Agent Banks (“AABs/AAB”) FX corporations may sell FX without the need for prior BSP approval to cover payments for non-trade current account transactions (other than those related to foreign/foreign currency loans and investments) which include: (i) Resident to Resident FX transactions, and (ii) Resident to Non-Resident Non-Trade Current Account transactions.
• AABs/AAB FX corporations may now also sell FX to non-resident tourists and balikbayans to the extent of the amount of FX shown to have been sold for pesos by the non-residents to AABs/AAB FX corporations. Departing tourists and balikbayans may reconvert at airports or other ports of exit to a maximum of USD10,000 or its equivalent in other currencies.
• Any unutilized proceeds from foreign currency loans and borrowings of the National Government, its political subdivisions, instrumentalities, and government-owned and controlled corporations must be deposited with the BSP pending utilization.

Please refer to the full circular here for the complete amendments, deleted provisions, and revised appendices.