Clarification of Section 44 of CB Circular No. 1389 dated April 13, 1993, as amended, on outward investments by Philippine residents

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MANILA

OFFICE OF THE GOVERNOR

CIRCULAR-LETTER

Series of 2003

TO Al Authorized Agent Banks

SUBJECT: Clarification of Section 44 of CB Circular No. 1389 dated Philippine residents April 13, 1993, as amended, on outward investments by

sourced from the Philippine banking system and bank-affiliated FX corporations, via spot Section 44 is clarified so as to exclude in the coverage of eligible outward investments, Philippine residents and, therefore, may not be funded with foreign exchange (FX) purchases, derivatives transactions or any other means. foreign currency-denominated bonds/notes of the Republic of the Philippines (ROP) or other Philippine entities, whether issued onshore or offshore, that are acquired by Pursuant to Monetary Board Resolution No. 1154 dated August 14, 2003, subject

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RAFAEL B. BUENAVENTURA Governor

August 2003