QuestionsQuestions (POEA MEMORANDUM CIRCULAR NO. 17, S. 1992)
IC Circular Letter No. 9-97 states that RA 8183 repealed RA 529, the so-called Uniform Currency Act.
Only foreign currencies acceptable to the Bangko Sentral ng Pilipinas (BSP) as part of its international reserves are allowed.
They are considered surplus investments and may be made only if the laws of the country where the property is located allow the tender to own real estate property in the event of foreclosure.
The guarantor bank must have a credit rating of at least BBB, as rated by an international credit rating agency acceptable to the Insurance Commission.
They are considered surplus investments if made in accordance with the rules and regulations and upon prior approval of the Insurance Commission.
Reserves and other liabilities in a foreign currency must be matched with assets in the same currency to at least 50%.
Exceptions may be granted where the aggregate liabilities in a foreign currency are less than 10% of the total foreign currency liabilities of the company.
They must be valued in the same currency used in the insurance policy.
They must be booked in the currency stated in the underlying instrument/document; if absent, they must be booked in the currency of the country where the asset is physically located.
Only cash holdings in acceptable foreign currencies as defined in Item A are allowed.
They must be based on the peso equivalent of the premium or sum assured, at the time the taxes are due, in accordance with BIR regulations.
Commissions shall be paid in accordance with the currency agreed upon in the agency contract.
They are payable in the currency of the insurance policy issued; payment may be made in another currency subject to the agreement between the claimant and the insurance company.
Premiums must be billed in the same currency as the policy issued, but payment may be made in another currency subject to the agreement between the policy holder and the insurance company.
Unrealized foreign exchange gain or loss is recognized as Fluctuation Reserve-Foreign Exchange; realized foreign exchange gain or loss is recognized as income or loss in the Income Statement.
For periodic and annual reporting, they must be converted to Philippine peso based on the BSP guiding rate at the end of the reporting period.
Schedules showing balance sheet items in foreign currency values and their peso equivalent must be submitted; if an account has multiple currencies, a sub-schedule showing the currency breakdown must also be submitted.