The Monetary Board (MB), in its meeting held on 26 March 2009 approved the extension of the effectivity of Circular No. 629 dated 31 October 2008, for another six (6) months from 31 March 2009 to 30 September 2009. Circular No. 629 allowed banks to add back to the total assets of the Foreign Currency Deposit Unit (FCDU)/Expanded Foreign Currency Deposit Unit (EFCDU) the net unrealized losses arising from the marking to market of financial assets/liabilities and revaluation of third currencies to US Dollar booked therein, for purposes of determining compliance with asset cover requirements.
The six-month extension was granted by the MB as market volatility and degree of risk aversion in emerging markets still remains at high levels compared to the pre-crisis levels.