QuestionsQuestions (Republic Act No. 2609)
It authorizes the Central Bank to establish a uniform margin (not more than 40%) over banks’ selling rates of foreign exchange, for sales by the Central Bank and its authorized agent banks, as long as foreign exchange transactions are subject to licensing under Section 74 of R.A. No. 265.
The Monetary Board fixes the margin at a rate it deems necessary to effectively curtail any excessive demand upon the international reserve.
The margin shall not be changed oftener than once a year, except upon recommendation of the National Economic Council and approval of the President.
It applies when and as long as the Central Bank subjects all transactions in gold and foreign exchange to licensing under Section 74 of R.A. No. 265.
Along with other monetary, credit and fiscal measures, monetary authorities must take steps for adoption of a four-year program of gradual decontrol.
The margin is not imposed on foreign exchange sales for specified categories of imports such as many drugs and medicines, medical/dental/hospital supplies, fertilizers and soil conditioners, certain spare parts, textbooks and scientific books, newsprint, film-related materials, and other enumerated essential goods.
For example, insulin (all forms) is listed under Section 2(I)(v).
No. Section 3 exempts the liquidation of drafts drawn under letters of credit and contractual obligations calling for payment of foreign exchange that were issued, approved, and outstanding as of the date the Act took effect, and extensions with the same terms.
It exempts (1) repayment of loans contracted by the government with foreign governments/private banks and (2) importation of machineries and equipment by provinces, cities, or municipalities for exclusive use in public utilities fully owned and maintained by them.
He must declare (1) the true purchase price and true and accurate landed cost of the imported commodities and (2) he will not fix prices over the landed costs in an unreasonable amount or in violation of any existing law or regulation.
To ensure truthful declaration of costs and to prevent unreasonable markup or price violations over landed costs when foreign exchange is used for imports.
They accrue to the Central Bank of the Philippines and are governed by Section 41 of R.A. No. 265.
It is unlawful for the beneficiary to sell, transfer, assign, convey, or otherwise alienate the same or any interest thereon to any other person.
Upon conviction, the offender may be sentenced to a fine not exceeding PHP 20,000 or imprisonment not exceeding two years, or both, with specific rules on corporate offenders (penalty imposed on responsible officers) and aliens (deportation in addition).
In addition to the penalties, forfeiture of the right hereafter to purchase any foreign exchange may be imposed.
It takes effect upon approval and remains in force until December 31, 1964.