Amendments to Regulations on the Open Foreign Exchange Position of Banks

BANGKO SENTRAL NG PILIPINAS OFFICE OF THE COVERNOR CTRCU 14p 11s. ll2e Series of 2021 Subject: Amendments to Regulations on the Open Foreign Exchange Position of Banks The Monetary Board, in its Resolution No. 61.l dated 20 May 2021, approved the amendments to the Regulations on the Open Foreign Exchange Position of Banks. Seetion l. The Sections of Part V, Chapter ll of the Manual of Regulations on Foreign Exchange Transactions (FX Manual) on the Open Foreign Exchange Position of Banks shall be replaced by the following: "section 96. General Policy. lt is the policy of the BSP to promote the growth and development of the foreign exchange market. ln order to ensure that banks are able to provide ample liquidity in the market but, at the same time, conduct their business in a sound manner, banks shall manage their open foreign exchange positions in accordance with these guidelines. Banks shall likewise ensure faithful adherence to ethical standards in carrying out their foreign exchange transactions. Section 97, Definition of Terms. "Open Foreign Exchange Position" shall refer to the extent that banks' foreign exchange assets do not match their foreign exchange liabilities. An open position may either be "positive", "long", or "overbought" (i.e., foreign exchange assets exceed foreign exchange liabilities) or "negative", "short", or "oversold" (i.e., foreign exchange liabilities exceed foreig n excha nge assets). An Authorized Agent Bank (AAB)'s "Qualifying Capital" shall be determined in accordance with the Risk-Based Capital Adequacy Framework under Appendix 59 of the Manual of Regulations fcrr Banks. Section 98. Computation of the Consolidated Net Open Foreign Exchange Position. [p A,Ag'5 consolidated net open foreign exchange position is the higher

of the absolute value of the sum of the net long positions or the sum of the net short positions in individual currencies. The net long/short position in each currency shall consist of. n) FX assets and FX liabilities, excluding the following: i. loQo/o FX cover required by a foreign Monetary Authority to be deposited by a Philippine UB/KB with its advising/confirming bank in theforeign countryfor letters of credit issued; ii. Equity investments in foreign subsidiaries; iii. Investments in Clobal Peso Notes issued by the Republic of the Philippines; iv. Foreign exchange holdings resulting from original investments in New Money Bonds (NMB); v. "Duefrom HeadOffice/Branches/AgenciesAbroad-Assigned Capital" account, to the extent of the lower of assigned capital approved by the BSP or the amount of capital actually remitted;and vi. Amount of foreign currency-denominated assets pertaining to the net proceeds of outstanding issues of foreign currency denominated Additional Tier I capital instruments. {21 Contingent FX assets and contingent FX liabilities, including forward purchases and sales, which shall be reported at notional amount; (3) Options positions, in accordance with the following: a. AAg5 with Dealer Authorityto write options shall include the net delta weighted positions of their foreign currency options. b. AABs without the said authority shall include the notional amounts of all options positions that are in or at the money and exclude those that are out of the money; (4) Net position in outstanding foreign currency-denominated derivatives other than FX forwards, FX swaps and FX options, which shall be reported as the difference between (a) the positive fair value and {b) the negative fair value of these contracts; and {5) The net open foreign currency position of any of the AuA$'5 branches/offices, subsidiaries and affiliates here and abroad, whether or not they are financial institutions, as long as the bank and its shareholders/officers exercise reasonable influence or control

over such institutions. This item shall likewise include the net open foreign currency position of any entity that is engaged in foreign exchange trading or is a foreign exchange corporation that is affiliated with the AAB either by ownership, management control, or influence by the AAB itself or its retirement fund, officers, directors, or shareholders. Section 99. Net Open Foreign Exchange Position Limit. A bank's consolidated net open foreign exchange position (either overbought or oversold) shall not exceed 25 percent (25o/o) of its Qualifying Capital or USD]SO.O million, whichever is lower. AABs shall use the Qualifying Capital as of the month-end two months prior to the reporting date to determine the net foreign exchange position limit. For example, the amount of Qualifying Capital as of the end of January shall be the basis of the limit for all the days in March. A bank's consolidated net open foreign exchange position shall be computed on a daily basis based on its FX Form l. The reporting requirements are outlined in Appendix 19 of the FX Manual, while Appendix 19.1 provides an illustrative example of the computation of the net open position. Section lOO. Supervisory Framework. The Bangko Sentral shall monitor A,ASs'compliance with the net open foreign exchange position limit set out under Section 99 of the FX Manual. The Bangko Sentralwill pay particular attention to AABs that breach the limit five (5) times within a 2O-banking day period. The 2O-banking day period shall be reckoned on a rolling basis. The Bangko Sentral shall evaluate the instances of breaches, with due regard to the following: o The frequency and the gravity of the breaches; . The underlying cause/s of the breaches and the extent to which these are consistent with the AuA$t5 declared business strategies; . The strength of the Au\$'s risk management system; and o Actions taken by the AAB, if any, to address the breaches and restore compliance with the limit. Consistent with Section OO2 of the Manual of Regulations for Banks, the Bangko Sentral may deploy supervisory actions to ensure that foreign exchange risk does not threaten an A,A$'s safety and soundness. The Bangko Sentral may recommend corrective actions, curtail activities that

give rise to excessive risk, andlor impose sanctions on the AA$, it5 directors and officers, as appropriate." Section 2. Section lOl of the FX Manual is hereby amended to incorporate the following reportorial requirements: Title of Report Submission Submission Frequency/Deadline Procedure Category A. Consolidated Report on Foreign Exchange Assets and Liabilities For UBs/KBs: XXX A-3 Consolidated Daily, within three Email to DSA at Foreign (3) banking days DSA- Exchange from reference date [email protected] Position Report Sworn Monthly, within five Email to DSA at Certification on (5) banking days DSA- the Accuracy after end of [email protected] and reference month Completeness of the Consolidated Foreign Exchange (FX) Position Report For TBs: A-3 Schedules 8 and Monthly, within Email to DSA at 13 of FX Form I three (3) banking [email protected] days after end of reference month A-3 Consolidated Monthly, within Email to DSA at Foreign three (3) banking DSA- Exchange days after end of CFXPRGDbsp.gov.ph Position Report reference month

Sworn Monthly, within five Email to DSA at Certification on (5) banking days DSA. the Accuracy after end of [email protected] and reference month Completeness of the Consolidated Foreign Exchange {FX) Position Report XXX Section 3. Appendix 19 of the FX Manual shall be replaced by the contents of Annex A. Annexes P and P.l of the FX Manual shall be replaced by the contents of Annex B. Annex C of this Circular shall replace Annex Q of the FX Manual, while Annex C.l shall be added as Annex Q.l. Annex D of .l9..l. this Circular shall be added to the FX Manual as Appendix Annexes O, R, R.l, S, and S.l of the FX Manual are hereby deleted. Section 4. The mode and manner of the electronic submission of the Consolidated Foreign Exchange Position Report, as revised, shall be covered by a separate issuance. This Circular shalltake effect on'l August2021. FOR THE MONETARY BOARD: BEN]AMIN E. DIOKNO Covernor o? two ,'o1,1

ANNEX A Appendix 19 of the Manual of ReEulations on Foreign Exchange Transactions (FX Manual) Reporting Requirements of Relevant Schedules under the FX Form'l and the lmplementing Guidelines on the Computation of Open Foreign Exchange Positions of AABs t. The FX Form 1, together with all of its schedules, shall be reported .l3, in USD equivalent, except for Schedules I and which shall be in multi-currency. All reports shall be submitted in accordance with Section lOl of the FX Manual. 2. The data shall be reported in figures up to two decimal places (e.9., nearest USDI.OO; EUROI.OO). The original currencies to be reported in Schedule 13 shall be translated to USD using the FX rates provided in the BSP Reference Exchange Rate Bulletin. The qualifying capital of banks in PHP shall be translated to USD using the PDS Closing Rate in the same Bulletin. The report for a particular banking day shall use the FX rates in the Bulletin issued on the next banking day. 3. The balances to be reported in Schedule 13 shall be sourced from the banks' Multi Currency Control Ledgers (MCCL) or such other control records maintained by the reporting bank which contain the breakdown of FX assets and liabilities in their original currencies. The data from such MCCL or other control records should be equal to the balance of the corresponding accounts in the reporting bank's general ledger. 4. All transactions for the reference date shall be included. Transactions with deficient documents shall be reflected in the schedules with appropriate footnotes. 5. Reporting under the Consolidated Foreign Exchange Position Report (CFXPR) a. The following AA$s shall render reports on their consolidated net FX positions to the Department of Supervisory Anal5Aics (DSA) of the Financial Supervision Sector (FSS): i. Universal Banks (UBs) ii. Commercial Banks {KBs); and iii. Thrift Banks (TBs). b. UBs and KBs shall submit the CFXPR (Annex Q) to the DSA in accordance with Section lOl of the FX Manual.

ANNEX A TBs shall submit Schedule 13 of FX Form I and the CFXPR {Annex Q) to the DSA on a monthly basis, not later than three (3) banking days after the end of the reference month. -| The reports submitted should be duly signed by an authorized officer of the bank in accordance with SectionlT3 of the Manual of Regulations for Banks. Faxed reports shall be considered received within the prescribed deadline if these are sent on or before the same, provided that these are signed and the original is transmitted on the following banking day. e. Each AAB shall likewise submit a monthly certification signed by its President or Country Head (in the case of branches of foreign banks), Compliance Officer, and Treasurer on the completeness of its submissions. The template for the Certification is shown in Annex P. The certification shall be submitted at the end of each month, not later than five (5) banking days from the end of the reference month.

ANNEX B Page 1 of2 ANNEX P SWORN CERTIFICATION ON THE ACCURACY AND COMPLETENESS OF THE CONSOLIDATED NET FOREIGN EXCHANCE (FXl POS|TION REPORTS <Name of Bank> CERTIFICATION Pursuant to Section 98 of the Manual of Regulations on Foreign Exchange Transactions, as amended, the undersigned duly certify that the daily reports on the consolidated Net Foreign Exchange Position of our bank during the month of 2o- are true and correct" - the foreign We certifu further that such reports include currency position(s) of: {l) all of our branches/offices, subsidiaries or affiliates here and abroad over which our bank or our shareholders/officers directly or indirectly exercise reasonable influence or control; and (2) any Philippine entity that is engaged in foreign exchange trading or a foreign exchange corporation that is affiliated with our bank either by ownership, management control, or influence by the bank itself or its retirement fund, officers, d i rectors, or shareholders. IALTERNATIVE TEXT FOR BANKS THAT DO NOT HAVE QUALIFIED suBSlDlARlES oR AFFILIATESI we certifyfurther that we do not have subsidiaries or affiliates whose foreign exchange positions qualify for reporting in the consolidated Foreign Exchange Position Report. President or Compliance Officer Head of Treasury Country Head Department (for Foreign Banks) TI N: TIN: TIN:

ANNEX B SUBSCRIBED AND SWORN TO before me this day of 2O--, at , Philippines affiant/s exhibiting their govern ment-issued identification ca rds as fol lows: - NAME COVERN M ENT- DATE OF PLACE OF ISSUED ID ISSUE ISSUE Witness my hand and notarial seal on the date and place above-written. NOTARY PUBLIC Doc. No. Page No. ; Book No.-; Series of 2O-. -;

Annex C ANNEX Q Deadline: Within three (3) banking days after transaction date Submission: DSA _____________________________ Name of Bank/Code Consolidated Foreign Exchange Position Report In Absolute Amounts As of , ______ TOTAL AMOUNT REC. OTHERS Total in NO. USD JPY GBP HKD CHF CAD SGD AUD BHD KWD SAR BND IDR THB AED CNY KRW EUR US$ Equiv. US$ Equiv. I. NET FX POSITION OF THE BANK 1600100000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 Gross FX Assets/(Liabilities) 1600101000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2 Less: Exclusions 1/ 1600101001 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100% Foreign Currency Cover Required by a Foreign Monetary Authority to be Deposited with Advising/Confirming Banks Abroad 3 for L/Cs Issued 1600101002 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4 Equity Investments in Foreign Subsidiaries 1600101003 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Investments in Global Peso Notes Issued by Republic of the 5 Philippines 1600101004 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Foreign exchange holdings resulting from original investments in 6 New Money Bonds (NMB) 1600101005 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7 Due from HO/Branches/Agencies-Abroad-Assigned Capital 1600101006 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Foreign Currency-Denominated Assets Pertaining to the Net Proceeds of Outstanding Issues of Foreign Currency-Denominated 8 Additional Tier 1 (AT1) Capital Instruments 1600101007 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 9 Net FX Assets/(Liabilities) 1600102000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10 Options positions 2/ 1600103000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Contingent FX Assets/(Liabilities) (difference between items 12 and 11 15) 1600104000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12 Contingent FX Assets (sum of items 13 and 14) 1600104100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13 Spot FX Purchases 1600104101 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14 Forward FX Purchases 1600104102 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 15 Contingent FX Liabilities (sum of items 16 and 17) 1600104200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16 Spot FX Sales 1600104201 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17 Forward FX Sales 1600104202 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 18 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600105000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 II. NET FX POSITION OF FOREX SUBSIDIARIES AND/OR AFFILIATES 4/ 5/ 1600200000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19 Net FX Assets/(Liabilities) 1600201000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20 Options positions 2/ 1600202000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Contingent FX Assets/(Liabilities) (difference between items 22 and 21 25) 1600203000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22 Contingent FX Assets (sum of items 23 and 24) 1600203100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23 Spot purchases 1600203101 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 24 Forward purchases 1600203102 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 25 Contingent FX Liabilities (sum of items 26 and 27) 1600203200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 26 Spot sales 1600203201 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 27 Forward sales 1600203202 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 28 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600204000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 III. NET FX POSITION OF SUBSIDIARIES AND/OR AFFILIATES 6/ 7/ 1600300000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 29 Net FX Assets/(Liabilities) 1600301000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 30 Options positions 2/ 1600302000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Net Contingent FX Assets/(Liabilities) (difference between items 32 and 31 35) 1600303000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 32 Contingent Assets (sum of items 33 and 34) 1600303100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 33 Spot purchases 1600303101 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 34 Forward purchases 1600303102 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 35 Contingent Liabilities (sum of items 36 and 37) 1600303200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 36 Spot sales 1600303201 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 37 Forward sales 1600303202 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 38 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600304000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 IV. COMBINED NET FX POSITION IN INDIVIDUAL CURRENCY 8/ 1600400000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 V. COMBINED NET FX POSITION IN US$ EQUIVALENT 9/ 1600500000 VI. SUM OF NET LONG POSITIONS (US$) 10/ 1600600000 VII. SUM OF NET SHORT POSITIONS (US$) 10/ 1600700000 VIII. CONSOLIDATED NET OPEN FX POSITION (US$) 11/ 1600800000 0.00 IX. US$ EQUIVALENT OF QUALIFYING CAPITAL 12/ 1600900000 X. RATIO OF NET OPEN FX POSITION TO QUALIFYING CAPITAL 13/ 1601000000 #DIV/0! 1/ Item 1 of Section 98 of the FX Manual 2/ Computed in accordance with item 3 of Section 98 of the FX Manual 3/ Computed in accordance with item 4 of Section 98 of the FX Manual 4/ As reported by the bank 5/ Sum of items 19, 20, 21 and 28 6/ As reported by the bank 7/ Sum of items 29, 30, 31 and 38 8/ Sum of Items I, II and III 9/ Converted in accordance with item 2 of Appendix 19 of the FX Manual 10/ Reported in absolute value 11/ In accordance with Section 98 of the FX Manual, this is the higher of the absolute value of VI and the absolute value of VII. 12/ Converted in accordance with item 2 of Appendix 19 of the FX Manual 13/ Ratio of Item VIII and IX

Annex C Annex C ANNEX Q ANNEX Q _____________________________ Name of Bank/Code Consolidated Foreign Exchange Position Report In Absolute Amounts As of , ______ Foreign Regular REC. OTHERS Total in NO. USD JPY GBP HKD CHF CAD SGD AUD BHD KWD SAR BND IDR THB AED CNY KRW EUR US$ Equiv. US$ Equiv. I. NET FX POSITION OF THE BANK 1600100000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 Gross FX Assets/(Liabilities) 1600101000 2 Less: Exclusions 1/ 1600101001 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100% Foreign Currency Cover Required by a Foreign Monetary Authority to be Deposited with Advising/Confirming Banks Abroad 3 for L/Cs Issued 1600101002 4 Equity Investments in Foreign Subsidiaries 1600101003 Investments in Global Peso Notes Issued by Republic of the 5 Philippines 1600101004 Foreign exchange holdings resulting from original investments in 6 New Money Bonds (NMB) 1600101005 7 Due from HO/Branches/Agencies-Abroad-Assigned Capital 1600101006 Foreign Currency-Denominated Assets Pertaining to the Net Proceeds of Outstanding Issues of Foreign Currency-Denominated 8 Additional Tier 1 (AT1) Capital Instruments 1600101007 9 Net FX Assets/(Liabilities) 1600102000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10 Options positions 2/ 1600103000 Net Contingent FX Assets/(Liabilities) (difference between items 12 and 11 15) 1600104000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12 Contingent FX Assets (sum of items 13 and 14) 1600104100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13 Spot FX Purchases 1600104101 14 Forward FX Purchases 1600104102 15 Contingent FX Liabilities (sum of items 16 and 17) 1600104200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16 Spot FX Sales 1600104201 17 Forward FX Sales 1600104202 18 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600105000 II. NET FX POSITION OF FOREX SUBSIDIARIES AND/OR AFFILIATES 4/ 5/ 1600200000 19 Net FX Assets/(Liabilities) 1600201000 20 Options positions 2/ 1600202000 Net Contingent FX Assets/(Liabilities) (difference between items 22 and 21 25) 1600203000 22 Contingent FX Assets (sum of items 23 and 24) 1600203100 23 Spot purchases 1600203101 24 Forward purchases 1600203102 25 Contingent FX Liabilities (sum of items 26 and 27) 1600203200 26 Spot sales 1600203201 27 Forward sales 1600203202 28 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600204000 III. NET FX POSITION OF SUBSIDIARIES AND/OR AFFILIATES 6/ 7/ 1600300000 29 Net FX Assets/(Liabilities) 1600301000 30 Options positions 2/ 1600302000 Net Contingent FX Assets/(Liabilities) (difference between items 32 and 31 35) 1600303000 32 Contingent Assets (sum of items 33 and 34) 1600303100 33 Spot purchases 1600303101 34 Forward purchases 1600303102 35 Contingent Liabilities (sum of items 36 and 37) 1600303200 36 Spot sales 1600303201 37 Forward sales 1600303202 38 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600304000 IV. COMBINED NET FX POSITION IN INDIVIDUAL CURRENCY 8/ 1600400000 V. COMBINED NET FX POSITION IN US$ EQUIVALENT 9/ 1600500000 VI. SUM OF NET LONG POSITIONS (US$) 10/ 1600600000 VII. SUM OF NET SHORT POSITIONS (US$) 10/ 1600700000 VIII. CONSOLIDATED NET OPEN FX POSITION (US$) 11/ 1600800000 IX. US$ EQUIVALENT OF QUALIFYING CAPITAL 12/ 1600900000 X. RATIO OF NET OPEN FX POSITION TO QUALIFYING CAPITAL 13/ 1601000000 1/ Item 1 of Section 98 of the FX Manual 2/ Computed in accordance with item 3 of Section 98 of the FX Manual 3/ Computed in accordance with item 4 of Section 98 of the FX Manual 4/ As reported by the bank 5/ Sum of items 19, 20, 21 and 28 6/ As reported by the bank 7/ Sum of items 29, 30, 31 and 38 8/ Sum of Items I, II and III 9/ Converted in accordance with item 2 of Appendix 19 of the FX Manual 10/ Reported in absolute value 11/ In accordance with Section 98 of the FX Manual, this is the higher of the absolute value of VI and the absolute value of VII. 12/ Converted in accordance with item 2 of Appendix 19 of the FX Manual 13/ Ratio of Item VIII and IX

Annex C Annex C ANNEX Q ANNEX Q _____________________________ Name of Bank/Code Consolidated Foreign Exchange Position Report In Absolute Amounts As of , ______ FCDU/EFCDU REC. OTHERS Total in NO. USD JPY GBP HKD CHF CAD SGD AUD BHD KWD SAR BND IDR THB AED CNY KRW EUR US$ Equiv. US$ Equiv. I. NET FX POSITION OF THE BANK 1600100000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 Gross FX Assets/(Liabilities) 1600101000 2 Less: Exclusions 1/ 1600101001 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100% Foreign Currency Cover Required by a Foreign Monetary Authority to be Deposited with Advising/Confirming Banks Abroad 3 for L/Cs Issued 1600101002 4 Equity Investments in Foreign Subsidiaries 1600101003 Investments in Global Peso Notes Issued by Republic of the 5 Philippines 1600101004 Foreign exchange holdings resulting from original investments in 6 New Money Bonds (NMB) 1600101005 7 Due from HO/Branches/Agencies-Abroad-Assigned Capital 1600101006 Foreign Currency-Denominated Assets Pertaining to the Net Proceeds of Outstanding Issues of Foreign Currency-Denominated 8 Additional Tier 1 (AT1) Capital Instruments 1600101007 9 Net FX Assets/(Liabilities) 1600102000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10 Options positions 2/ 1600103000 Net Contingent FX Assets/(Liabilities) (difference between items 12 and 11 15) 1600104000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12 Contingent FX Assets (sum of items 13 and 14) 1600104100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13 Spot FX Purchases 1600104101 14 Forward FX Purchases 1600104102 15 Contingent FX Liabilities (sum of items 16 and 17) 1600104200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16 Spot FX Sales 1600104201 17 Forward FX Sales 1600104202 18 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600105000 II. NET FX POSITION OF FOREX SUBSIDIARIES AND/OR AFFILIATES 4/ 5/ 1600200000 19 Net FX Assets/(Liabilities) 1600201000 20 Options positions 2/ 1600202000 Net Contingent FX Assets/(Liabilities) (difference between items 22 and 21 25) 1600203000 22 Contingent FX Assets (sum of items 23 and 24) 1600203100 23 Spot purchases 1600203101 24 Forward purchases 1600203102 25 Contingent FX Liabilities (sum of items 26 and 27) 1600203200 26 Spot sales 1600203201 27 Forward sales 1600203202 28 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600204000 III. NET FX POSITION OF SUBSIDIARIES AND/OR AFFILIATES 6/ 7/ 1600300000 29 Net FX Assets/(Liabilities) 1600301000 30 Options positions 2/ 1600302000 Net Contingent FX Assets/(Liabilities) (difference between items 32 and 31 35) 1600303000 32 Contingent Assets (sum of items 33 and 34) 1600303100 33 Spot purchases 1600303101 34 Forward purchases 1600303102 35 Contingent Liabilities (sum of items 36 and 37) 1600303200 36 Spot sales 1600303201 37 Forward sales 1600303202 38 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600304000 IV. COMBINED NET FX POSITION IN INDIVIDUAL CURRENCY 8/ 1600400000 V. COMBINED NET FX POSITION IN US$ EQUIVALENT 9/ 1600500000 VI. SUM OF NET LONG POSITIONS (US$) 10/ 1600600000 VII. SUM OF NET SHORT POSITIONS (US$) 10/ 1600700000 VIII. CONSOLIDATED NET OPEN FX POSITION (US$) 11/ 1600800000 IX. US$ EQUIVALENT OF QUALIFYING CAPITAL 12/ 1600900000 X. RATIO OF NET OPEN FX POSITION TO QUALIFYING CAPITAL 13/ 1601000000 1/ Item 1 of Section 98 of the FX Manual 2/ Computed in accordance with item 3 of Section 98 of the FX Manual 3/ Computed in accordance with item 4 of Section 98 of the FX Manual 4/ As reported by the bank 5/ Sum of items 19, 20, 21 and 28 6/ As reported by the bank 7/ Sum of items 29, 30, 31 and 38 8/ Sum of Items I, II and III 9/ Converted in accordance with item 2 of Appendix 19 of the FX Manual 10/ Reported in absolute value 11/ In accordance with Section 98 of the FX Manual, this is the higher of the absolute value of VI and the absolute value of VII. 12/ Converted in accordance with item 2 of Appendix 19 of the FX Manual 13/ Ratio of Item VIII and IX

Annex C Annex C ANNEX Q ANNEX Q _____________________________ Name of Bank/Code Consolidated Foreign Exchange Position Report In Absolute Amounts As of , ______ Foreign Offices REC. OTHERS Total in USD JPY GBP HKD CHF CAD SGD AUD BHD KWD SAR BND IDR THB AED CNY KRW EUR US$ Equiv. US$ Equiv. NO. I. NET FX POSITION OF THE BANK 1600100000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1 Gross FX Assets/(Liabilities) 1600101000 2 Less: Exclusions 1/ 1600101001 100% Foreign Currency Cover Required by a Foreign Monetary Authority to be Deposited with Advising/Confirming Banks Abroad 3 for L/Cs Issued 1600101002 4 Equity Investments in Foreign Subsidiaries 1600101003 Investments in Global Peso Notes Issued by Republic of the 5 Philippines 1600101004 Foreign exchange holdings resulting from original investments in 6 New Money Bonds (NMB) 1600101005 7 Due from HO/Branches/Agencies-Abroad-Assigned Capital 1600101006 Foreign Currency-Denominated Assets Pertaining to the Net Proceeds of Outstanding Issues of Foreign Currency-Denominated 8 Additional Tier 1 (AT1) Capital Instruments 1600101007 9 Net FX Assets/(Liabilities) 1600102000 10 Options positions 2/ 1600103000 Net Contingent FX Assets/(Liabilities) (difference between items 12 and 11 15) 1600104000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 12 Contingent FX Assets (sum of items 13 and 14) 1600104100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 13 Spot FX Purchases 1600104101 14 Forward FX Purchases 1600104102 15 Contingent FX Liabilities (sum of items 16 and 17) 1600104200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 16 Spot FX Sales 1600104201 17 Forward FX Sales 1600104202 18 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600105000 II. NET FX POSITION OF FOREX SUBSIDIARIES AND/OR AFFILIATES 4/ 5/ 1600200000 19 Net FX Assets/(Liabilities) 1600201000 20 Options positions 2/ 1600202000 Net Contingent FX Assets/(Liabilities) (difference between items 22 and 21 25) 1600203000 22 Contingent FX Assets (sum of items 23 and 24) 1600203100 23 Spot purchases 1600203101 24 Forward purchases 1600203102 25 Contingent FX Liabilities (sum of items 26 and 27) 1600203200 26 Spot sales 1600203201 27 Forward sales 1600203202 28 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600204000 III. NET FX POSITION OF SUBSIDIARIES AND/OR AFFILIATES 6/ 7/ 1600300000 29 Net FX Assets/(Liabilities) 1600301000 30 Options positions 2/ 1600302000 Net Contingent FX Assets/(Liabilities) (difference between items 32 and 31 35) 1600303000 32 Contingent Assets (sum of items 33 and 34) 1600303100 33 Spot purchases 1600303101 34 Forward purchases 1600303102 35 Contingent Liabilities (sum of items 36 and 37) 1600303200 36 Spot sales 1600303201 37 Forward sales 1600303202 38 Net Position in Other Foreign Currency-Denominated Derivatives 3/ 1600304000 IV. COMBINED NET FX POSITION IN INDIVIDUAL CURRENCY 8/ 1600400000 V. COMBINED NET FX POSITION IN US$ EQUIVALENT 9/ 1600500000 VI. SUM OF NET LONG POSITIONS (US$) 10/ 1600600000 VII. SUM OF NET SHORT POSITIONS (US$) 10/ 1600700000 VIII. CONSOLIDATED NET OPEN FX POSITION (US$) 11/ 1600800000 IX. US$ EQUIVALENT OF QUALIFYING CAPITAL 12/ 1600900000 X. RATIO OF NET OPEN FX POSITION TO QUALIFYING CAPITAL 13/ 1601000000 1/ Item 1 of Section 98 of the FX Manual 2/ Computed in accordance with item 3 of Section 98 of the FX Manual 3/ Computed in accordance with item 4 of Section 98 of the FX Manual 4/ As reported by the bank 5/ Sum of items 19, 20, 21 and 28 6/ As reported by the bank 7/ Sum of items 29, 30, 31 and 38 8/ Sum of Items I, II and III 9/ Converted in accordance with item 2 of Appendix 19 of the FX Manual 10/ Reported in absolute value 11/ In accordance with Section 98 of the FX Manual, this is the higher of the absolute value of VI and the absolute value of VII. 12/ Converted in accordance with item 2 of Appendix 19 of the FX Manual 13/ Ratio of Item VIII and IX

Annex C.1 ANNEX Q.1 _____________________________ Name of Bank/Code Consolidated Foreign Exchange Position Report In Absolute Amounts As of , ______ TOTAL AMOUNT REC. OTHERS Total in US$ NO. USD JPY GBP HKD CHF CAD SGD AUD BHD KWD SAR BND IDR THB AED CNY KRW EUR US$ Equiv. Equiv. II.1 NET FX POSITION OF FOREX SUBSIDIARIES AND/OR AFFILIATES ____________________ 1600200000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19 Net FX Assets/Liabilities 1600201000 20 Options positions 1600202000 Net Contingent FX Assets/(Liabilities) (difference between items 22 21 and 25) 1600203000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22 Contingent FX Assets (sum of items 23 and 24) 1600203100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23 Spot purchases 1600203101 24 Forward purchases 1600203102 25 Contingent FX Liabilities (sum of items 26 and 27) 1600203200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 26 Spot sales 1600203201 27 Forward sales 1600203202 28 Net Position in Other Foreign Currency-Denominated Derivatives 1600204000 II.2 NET FX POSITION OF FOREX SUBSIDIARIES AND/OR AFFILIATES ____________________ 1600200000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 19 Net FX Assets/Liabilities 1600201000 20 Options positions 1600202000 Net Contingent FX Assets/(Liabilities) (difference between items 22 21 and 25) 1600203000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 22 Contingent FX Assets (sum of items 23 and 24) 1600203100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 23 Spot purchases 1600203101 24 Forward purchases 1600203102 25 Contingent FX Liabilities (sum of items 26 and 27) 1600203200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 26 Spot sales 1600203201 27 Forward sales 1600203202 28 Net Position in Other Foreign Currency-Denominated Derivatives 1600204000 III.1 NET FX POSITION OF SUBSIDIARIES AND/OR AFFILIATES ____________________ 1600300000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 29 Net FX Assets/(Liabilities) 1600301000 30 Options positions 1600302000 Net Contingent FX Assets/(Liabilities) (difference between items 32 31 and 35) 1600303000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 32 Contingent Assets (sum of items 33 and 34) 1600303100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 33 Spot purchases 1600303101 34 Forward purchases 1600303102 35 Contingent Liabilities (sum of items 36 and 37) 1600303200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 36 Spot sales 1600303201 37 Forward sales 1600303202 38 Net Position in Other Foreign Currency-Denominated Derivatives 1600304000 III.2 NET FX POSITION OF SUBSIDIARIES AND/OR AFFILIATES ____________________ 1600300000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 29 Net FX Assets/(Liabilities) 1600301000 30 Options positions 1600302000 Net Contingent FX Assets/(Liabilities) (difference between items 32 31 and 35) 1600303000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 32 Contingent Assets (sum of items 33 and 34) 1600303100 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 33 Spot purchases 1600303101 34 Forward purchases 1600303102 35 Contingent Liabilities (sum of items 36 and 37) 1600303200 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 36 Spot sales 1600303201 37 Forward sales 1600303202 38 Net Position in Other Foreign Currency-Denominated Derivatives 1600304000

Annex D APPENDIX 19.1 ILLUSTRATIVE EXAMPLE: COMPUTATION OF THE NET OPEN FX POSITION Deadline: Within three (3) banking days after transaction date Submission: DSA _____________________________ Name of Bank/Code Consolidated Foreign Exchange Position Report In Absolute Amounts As of , ______ TOTAL AMOUNT REC. OTHERS Total in US$ NO. USD JPY GBP HKD EUR US$ Equiv. Equiv. IV. COMBINED NET FX POSITION IN INDIVIDUAL CURRENCY 8/ 1600400000 (50.00) 2,083.33 7.43 (155.16) 24.55 (15.00) V. COMBINED NET FX POSITION IN US$ EQUIVALENT 9/ 1600500000 (50.00) 20.00 10.00 (20.00) 30.00 (15.00) VI. SUM OF NET LONG POSITIONS (US$) 10/ 1600600000 59.99 VII. SUM OF NET SHORT POSITIONS (US$) 10/ 1600700000 85.00 VIII. CONSOLIDATED NET OPEN FX POSITION (US$) 11/ 1600800000 85.00 IX. US$ EQUIVALENT OF QUALIFYING CAPITAL 12/ 1600900000 416.35 X. RATIO OF NET OPEN FX POSITION TO QUALIFYING CAPITAL 13/ 1601000000 20.42 8/ Sum of Items I, II and III 9/ Converted in accordance with item 2 of Appendix 19 of the FX Manual 10/ Reported in absolute value 11/ In accordance with Section 98 of the FX Manual, this is the higher of the absolute value of VI and the absolute value of VII. 12/ Converted in accordance with item 2 of Appendix 19 of the FX Manual 13/ Ratio of Item VIII and IX