MANILA (Reuters) – The Philippine central bank announced on Friday further easing of foreign exchange rules to make transactions within the local banking system easier for individuals and businesses.
Bangko Sentral ng Pilipinas Officer-in-Charge Diwa Guinigundo said the conversion of foreign currency loans granted by banks to peso loans would no longer require central bank approval “under certain conditions” meant to ensure lenders understand the extent of risks involved.
The simplified rule would also apply to the transfer of foreign currency loans, as well as acquired real estate property, from banks’ foreign currency deposit unit books to regular banking unit books, Guinigundo said.
“The new policy is in line with the BSP’s thrust to further liberalize FX rules while maintaining a safe and sound financial system, a stable FX market, and an appropriate monetary policy,” Guinigundo said in a statement.
Policymakers have been relaxing foreign exchange rules in recent years to make it more responsive to the needs of one of Asia’s fastest growing economies.
(Reporting by Karen Lema; Editing by Sam Holmes)