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.
2026-06-03Central Bank of the Philippines
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.