The Central Bank of the Philippines issued a memorandum clarifying that, under Circular No. 1212 of 11 April 2025, non-deliverable foreign exchange derivative transactions, particularly non-deliverable forward transactions involving banks’ own-account sales of foreign exchange against the Philippine peso to non-resident financial institutions, must be tied to legitimate underlying economic activities and supported by proper documentation, with the clarification intended to promote a common understanding among banks of the circular’s policy intent.
Central Bank of the Philippines2026-06-03
Central Bank of the Philippines clarifies underlying activity and documentation requirements for peso non deliverable forwards with non resident financial institutions
The Central Bank of the Philippines issued a memorandum clarifying that, under Circular No. 1212 of 11 April 2025, non-deliverable foreign exchange derivative transactions must be tied to legitimate underlying economic activities and supported by proper documentation. The clarification focuses on non-deliverable forward transactions involving banks’ own-account sales of foreign exchange against the Philippine peso to non-resident financial institutions and aims to promote a common understanding of the circular’s policy intent.