Minimum documentary requirements for foreign exchange forward and swap transactions

CIRCULAR NO. 435 Series of 2004

The Monetary Board, under its Resolution No. 725 dated 20 May 2004, approved the amendment of Annex "A" of BSP Circular No. 407 dated 30 September 2003 on "MINIMUM DOCUMENTARY REQUIREMENTS FOR FOREIGN EXCHANGE (FX) FORWARD AND SWAP TRANSACTIONS" as follows:

1.  Item A.2.2., first paragraph, on "Inward Foreign Investments" shall read:

"The outstanding amount of sales/maturity proceeds due for repatriation to non-resident investors pertaining to BSP-registered investments in:

a.  PSE-listed shares of stock; b.  government securities c.  money market instruments; and d.  peso time deposits with a minimum tenor of 90 days

may be covered by forward FX contracts subject to the presentation of the original BSRD on or before deal date, except that for Item 2.2.a above, the original BSRD or BSRD Letter-Advice together with the local broker's sales invoice shall be presented on or before maturity date of the FX forward contract which coincides with the settlement date of the PSE sale transaction"; and

2.   Item B1.2, the Caption "Under DA/OA" shall read "Under DA/OA, Documents Against Payment (DP) or Direct Remittance (DR)".

This Circular shall take effect fifteen (15) days after its publication in the Official Gazette or in a newspaper of general circulation in the Philippines.

FOR THE MONETARY BOARD:

RAFAEL B. BUENAVENTURA Governor