Availability of the Currency Rate Risk Protection Program (CRRP) Facility

BANGKO SENTRAL NG PILIPINAS OFFICE OF THE COVERNOR CIRCULAR LETTER NO. CL-2O23.O26 To: All Universal and Commercial Banks (UKBs) Subject : Availability of the Currency Rate Risk Protection Program (CRPP) Facilitlt Pursuant to BSP Circular No.lOt4 dated 24 September 2O18, the CRPP Facility is a continuing facility that offers a non-deliverable USD/PHP forward contract (NDF) between the BSP and a UB/KB in response to the request of bank clients who wish to hedge their eligible foreign currency obligations. ln 2022, the Philippine peso depreciated, in line with comparable regional peers, amid worries over aggressive interest rate hikes by the U.S. Federal Reserve, and concerns over global economic slowdown following Russia's invasion of Ukraine. as well as the imposition of tighter restrictions in China. As such, due to the possibility of renewed depreciation pressure in the peso following the continued interest rate hikes by the Fed, we would like to remind all UKBs that the CRPP facility remains open. Bank clients who wish to hedge their eligible foreign currency obligations from foreign exchange volatility through the CRPP may contact their respective banks. Banks that wish to avail of the CRPP Facility shall adhere to the implementing guidelines set out under BSP Circular No.'1O15 series of 2O18, as amended by BSP Circular No.li72 series of 2023. For information and guidance. 7-tW- ' HI G. FONACIER fficer-in-Charge l! epritzozs