Title
Currency Exchange Facility for OFWs from select countries
Law
Bsp Memorandum
Decision Date
Mar 19, 2003
The Bangko Sentral ng Pilipinas establishes a Currency Exchange Facility allowing Overseas Filipino Workers returning from Kuwait, Iraq, Israel, and Turkey to convert up to Php 10,000 of foreign currency into pesos within seven days of arrival, with specific documentation requirements and extended banking hours at authorized airports.
currency exchange
overseas workers
bangko sentral

Legal basis and enabling resolution

  • The facility is implemented based on Monetary Board Resolution No. 283 dated February 27, 2003.
  • The Memorandum operationalizes the Monetary Board approval by setting exchange limits, coverage, procedures, and reporting.
  • The Memorandum binds BSP-Cash Department (CD), Regional Offices and Branches (RO/B), and Authorized Agent Banks (AABs) to the facility rules stated herein.

Purpose and policy intent

  • The Currency Exchange Facility for Overseas Filipino Workers (OFWs) enables returning OFWs to convert specified foreign banknotes into pesos.
  • The facility is designed to support OFWs arriving from designated countries through designated banks and BSP offices.
  • The facility establishes controlled exchange limits and controlled exchange windows tied to arrival.

Coverage: who may exchange and where

  • The BSP accepts banknotes for conversion to pesos from OFWs returning to the Philippines from Kuwait, Iraq, Israel and Turkey.
  • Exchange is available through authorized agent banks (AABs), particularly those with branches at specified Philippine international airports and related airport areas.
  • Airport branch coverage includes Ninoy Aquino International Airport 1 and 2, Clark, Subic, Laoag, Cebu, Davao and Zamboanga.
  • OFW exchange transactions must occur with authorized banks and with BSP-Cash Department (CD) and Regional Offices and Branches (RO/B) within the required period.

Persons and transaction limits

  • Each OFW may exchange up to a total of Php 10,000 of any or a combination of the following currencies:
    • Kuwaiti Dinar
    • Iraqi Dinar
    • Israeli Shekel
    • Turkish Lira
  • Exchange must be for the conversion of the acceptable banknotes into pesos.
  • Any permissible amount above the limit is governed by the “nearest Php 10,000 equivalent” adjustment rule stated for change difficulties.

Required exchange slip and change exception

  • The applicant must fill up the prescribed Currency Exchange Facility Conversion Slip (pro-forma attached as Annex A) for the exchange of acceptable currencies.
  • A reasonable excess may be allowed where difficulties arise in providing change in smaller denominations of the foreign currency being exchanged.
  • The allowed excess must be computed to the nearest Php 10,000.00 equivalent.

Exchange window and operational availability

  • Exchange is allowed only within seven (7) working days from the date of arrival at any authorized bank and with BSP-Cash Department (CD) and RO/B.
  • AABs must offer the exchange facility and extend banking hours to accommodate arrivals.
  • Banking hours extension may be up to 24 hours, as needed, for arrival accommodation at the specified international airports.

Documentary proof and BSP/Banks’ controls

  • BSP/AABs may require presentation of documentary proof, including:
    • passport or valid travel papers
    • travel papers issued and signed by the Philippine Embassy
    • travel papers stamped with the date of OFW’s arrival in the Philippines
    • documentary proof of source of income
  • BSP/AABs retain the right to demand documentary proof for compliance with the facility.

Exchange rates, purchase mechanics, and reporting

  • AABs may purchase acceptable banknotes at rates set by the BSP.
  • The BSP rates must be separately identified in the BSP Reference Exchange Rate Bulletin.
  • AABs must submit to the BSP-International Operations Department a consolidated weekly summary report of currencies purchased under the facility.
  • The weekly summary report must use the attached prescribed form (Annex B).

FX treatment in banks

  • FX purchases under the facility must not be included in the FX position of banks.

Training and implementation support

  • Branch offices at the named international airports are advised to send their representatives to the Know your Money and Counterfeit Detection Seminar Workshop.
  • The seminar workshop is conducted by the Cash Department, BSP, at the BSP Complex Manila.
  • The seminar workshop covers the following currencies:
    • Kuwaiti Dinar
    • Iraqi Dinar
    • Israeli Shekel
    • Turkish Lira

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