The Central Bank of the Philippines’ Monetary Board approved amendments to its foreign exchange regulations under BSP Circular No. 1212, widening access to Philippine peso hedging instruments and updating related FX derivatives and registration processes. The revised rules expand the permissible set of peso-linked hedging products beyond deliverable and non-deliverable FX forwards, FX swaps and cross-currency swaps to also allow instruments including non-deliverable swaps, non-deliverable cross-currency swaps and FX options. Other changes lift the requirement for deliverable FX forwards to match the maturity of the underlying FX exposure by allowing maturities equal to or shorter than the exposure, clarify rules for banks transacting in FX derivatives for their own account and with customers, and implement an online submission system for applications to register foreign investments, with separate issuances to cover system usage and implementation details. Banks have a six-month transition period from the circular’s effectivity to adjust systems and processes and comply with revised reports and new reporting guidelines. The circular takes effect 15 banking days after publication in the Official Gazette or a newspaper of general circulation in the Philippines.
Central Bank of the Philippines 2025-04-24
Central Bank of the Philippines expands allowable peso FX hedging instruments to include options and non-deliverable swaps
The Central Bank of the Philippines’ Monetary Board approved amendments to foreign exchange regulations under BSP Circular No. 1212, expanding access to Philippine peso hedging instruments and updating FX derivatives and registration processes. The revised rules include new hedging products, relaxed maturity requirements for deliverable FX forwards, clarified rules for banks, and an online submission system for foreign investment registration. Banks have six months to comply with the new guidelines.