QuestionsQuestions (CBP CIRCULAR-LETTER S. 1992)
It informs foreign exchange earners that maintaining regulated Special Deposit Accounts (SDAs) has become unnecessary, and directs account holders on how to terminate/close their existing SDA authorities, including withdrawing balances or transferring them to foreign currency deposit accounts.
Circular 1353 allowed foreign exchange earners to have free disposition of their foreign exchange receipts and acquisitions, and to retain all such receipts/acquisitions; thus, the portion-retention limitation under SDAs became unnecessary.
They may withdraw SDA balances either in foreign exchange or in their peso equivalent, or transfer the balances to a foreign currency deposit account under CB Circular 343/547.
To inform their clients that they may withdraw or transfer SDA balances, and to explain that no extensions of expired SDA authority will be granted and no new SDA authority will be issued.
No. The Circular-Letter states the Central Bank will no longer extend the validity of any SDA authority that has expired or is about to expire.
No. It states that henceforth, the Central Bank will not grant any new SDA authority to any person or entity earning foreign exchange.
It means the regulatory function of SDAs—limiting what portion of foreign exchange receipts could be retained—no longer serves a purpose because Circular 1353 now allows retention and free disposition of receipts.
A shift from regulated retention/partial access under SDAs to greater liberalization—allowing free disposition and full retention of foreign exchange receipts and acquisitions.
Foreign exchange withdrawal or withdrawal in the peso equivalent.
CB Circular 343/547.
Edgardo P. Zialcita, Deputy Governor in Charge, International Operations Sector, with a signature dated October 6, 1992.
Because the policy change under CB Circular 1353 directly applies to them; their ability to retain and dispose of foreign exchange eliminates the need for SDAs.
They cannot expect renewal/extension; SDA authority validity will not be extended by the Central Bank, so they must either withdraw or transfer balances as allowed.
No. The Circular-Letter explicitly provides that the Central Bank will no longer extend the validity of any SDA authority that has expired or is about to expire.
Since no new SDA authorities will be granted, parties must comply with the new liberalized framework (e.g., Circular 1353) rather than relying on SDA authorities.
It directs counsel/representatives to advise clients with existing SDAs to withdraw or transfer balances and to note that no extensions or new authorities will be granted. This is important to ensure clients timely adjust to regulatory changes and avoid relying on expiring authority.