BSP CIRCULAR LETTER

: Revaluation shall be done at least monthly using the Philippine Dealing System Weighted Average Rate (PDSWAR).
: The Philippine Dealing System Weighted Average Rate (PDSWAR) for the day should be used as the revaluation rate provided certain conditions about the differential with the Closing Rate are met.
: PDSCR should be used if the absolute differential between PDSWAR and PDSCR is greater than 2% of PDSWAR, and if total transactions for the day are at least $20 million and the volume of the last transaction for the day is at least 15% of total transactions.
: If there are no transactions for the day, use the immediately preceding applicable revaluation rate.
: They are revalued using the designated Peso/US dollar revaluation rate against the relevant US dollar/third currency rate in the Central Bank Reference Exchange Rate Bulletin for the day.
: Yes, revaluation entries passed at the end of the month may be reversed the following day.
: The Manual of Accounts for Commercial Banks as revised under BSP Circular Letters dated February 20, 1986, April 23, 1986, and further revised by BSP Circular Letter dated April 1, 1993.
: It provides the authority for the revision of item 4 of the guidelines on revaluation in the Manual of Accounts for Commercial Banks.
: 2% of PDSWAR is the threshold for the absolute differential to decide if PDSWAR or PDSCR should be used.
: Edgardo P. Zialcita, Officer-in-Charge, signed the circular.