Philippine c.bank eases some FX documentation rules

MANILA, April 24 - The Philippine central bank relaxed some foreign exchange documentation rules on Friday to allow easier access to dollars.

Under the new rules, foreign exchange dealers and money changers would be allowed to sell foreign exchange without supporting documentation for non-business transactions not exceeding $10,000.

Buyers of dollars no longer have to secure legal certification to support their foreign exchange purchase regardless of the amount to be bought.

The rules will take effect 15 days after they are published in newspapers, the central bank said.

(To see the full text of the central bank press release, click on http://www.bsp.gov.ph/publications/media.asp?id=2057)

The measures are part of liberalisation started by the central bank in 2007 and follow moves by local banks to strengthen their risk management.

In December 2007, the central bank relaxed derivative trading rules, allowing banks to use more sophisticated financial products, such as interest rate swaps and forwards, without a licence.

In 2007, it also raised local banks' foreign exchange trading limits to pre-Asian 1997/98 financial crisis levels and doubled the maximum amount local firms could invest abroad without prior approval to $12 million.