Manila relaxes forex rules for foreign firms
MANILA: The Philippine central bank has opened the way for foreign companies that get a listing here to convert their share-sale proceeds into foreign exchange via the banking system.
The Bangko Sentral ng Pilipinas (BSP) said yesterday it has issued a circular that makes clear such conversions of proceeds are permitted.
Diwa Guinigundo, a deputy governor of the BSP, said the central bank is also requiring foreign investments in the local equities market to be registered to allow for outward remittance through the banks of income from such placements.
"The new FX liberalisation policy aims to facilitate cross-border investment transactions consistent with our commitments under the Asean Economic Blueprint 2015," said Guinigundo.
"The listing and trading of non-resident securities in the domestic market can promote greater confidence in the economy and its capital market."
Monetary authorities said the new rules will address concerns raised after Del Monte Pacific Ltd became the first company on a foreign bourse to get a Manila listing. It listed 1.297 billion shares in the Philippines.
Wilhelmina Manalac, the central bank's managing director for the international subsector, said the new rules will help deepen the local capital market by encouraging creation of more instruments for investors.
A non-resident company that issues shares in the Philippines through the stock exchange will now be allowed to convert the pesos from it into foreign exchange that can be taken out of the country, Manalac said. Reuters