Question & AnswerQ&A (BSP CIRCULAR NO. 1353 S. 1992)
Foreign exchange may be freely sold and purchased outside the banking system. Foreign exchange receipts, acquisitions or earnings may also be deposited in foreign currency accounts or brought out of the Philippines, except for proceeds of foreign loans and investments which must be sold to Authorized Agent Banks (AABs) for pesos.
All categories of banks duly licensed by the Central Bank, except Offshore Banking Units (OBUs), are considered Authorized Agent Banks (AABs).
Examples include travel allowances, educational expenses abroad, medical expenses, support of dependents abroad, port disbursements abroad of Philippine-registered aircraft and vessels, membership dues and registration/examination fees, royalties, and lease payments among others.
AABs must ensure that purchases of foreign exchange are supported by documents evidencing the legitimacy of the obligation and purpose for the purchase. They must ensure that taxes, when required, have been paid and that the remittance is net of such taxes.
Departing tourists may reconvert unspent pesos of up to a maximum of US$200 or its equivalent without the need to show proof of previous sale of foreign exchange to AABs.
No person may import or export Philippine legal tender notes and coins, checks, money orders, or other peso bills of exchange exceeding P5,000 without Central Bank authorization.
A duly registered foreign investment with a Central Bank Registration Document (CBRD) allows full and immediate capital repatriation, dividend, and interest remittance privileges without prior Central Bank approval upon presentation of the CBRD.
For cash investments, an application must include bank certification of inward remittance and sworn certification by an investee officer on shares and amount paid. For investments in kind, required documents include shipping documents, SGS Clean Report of Findings, and sworn certification of shares and amount paid.
Thrift banks may accept deposits and trust accounts, deposit short-term with foreign banks, invest in short-term foreign currency instruments, grant short-term foreign currency loans, borrow short-term from other FCDUs, and engage in foreign currency swaps with Central Bank, OBUs, and other FCDUs.
Gold from small-scale miners must be sold to the Central Bank. Other forms of gold may be sold to the Central Bank optionally. The Central Bank may sell gold grains/pellets to jewelry manufacturers and industrial users. Private sector may buy and sell gold without Central Bank approval except for provisions repealed related to export and import of gold.