About the Bank Monetary Policy Banking Supervision Statistics Financial Markets Feedback
BSP Notes and Coins Loans-Credit and Asset Management Publications and Research Regulations Procurement
Banking Laws
Guidelines on Establishing Banks
Implementation of Basel Standards in the Philippines
Compliance with IAS and the Financial Reporting Package
Other Regulations
Financial Sector Assessment Program (FSAP)
Regulations Search


Date Issued: 07.31.1997

Number: 0138


Series of 1997

SUBJECT : Further Amendment of Section 2 of CB Circular No. 1389, as Amended

Pursuant to Monetary Board Resolution No. 995 dated July 30, 1997, Section 2 of Central Bank Circular No. 1389, as amended, is further to read as follows:

"Section 2. Sales of Foreign Exchange by AABs. — AABs may sell foreign exchange to residents (including the Government, its political subdivisions/instrumentalities and government-owned and controlled corporations), for any non-trade purpose, without need of prior Bangko Sentral ng Pilipinas (BSP) approval, provided that:

a) for sales of foreign exchange exceeding US$25,000.00, the AAB shall require a written notarized application and supporting documents from the purchaser of the foreign exchange; and

b) for sales of foreign exchange not exceeding US$25,000.00, the AAB shall require a written application only.

The written application required under b) shall be in accordance with the attached format.

AABs shall see to it that this limit on the safe of foreign exchange for a non-trade purpose is not breached by the splitting of a foreign exchange purchase into smaller amounts so as to make it appear that the purchase does not violate the prescribed limit.

There is deemed to be a splitting of a foreign exchange purchase within the prohibition of this Circular if a Bank sells foreign exchange for a non-trade purpose to any one purchaser, within a fifteen banking day period, in such individual amounts which, when combined, exceed $25,000.00.

The AAB shall report all sales covered by this section under FED I using the appropriate transaction codes.

For sales of foreign exchange for payment of obligations that are foreign loan- or foreign investment-related, the AAB shall require purchaser's presentation of proof of BSP approval and/or registration for each loan or investment, whenever required by existing rules."

This Circular shall take effect immediately.

For the Monetary Board:


For pdf copies of signed issuances not yet posted in this website, kindly e-mail the Administrative Services Department at external_issuances@bsp.gov.ph. To facilitate retrieval of requested issuance, please indicate type and number, date, and subject.

For queries on the contents of these issuances, please e-mail bspmail@bsp.gov.ph

Terms of Use Sitemap Contact Us Search Intranet Links Links