To authorize Citibank-Manila to allow its DDTS clearing accounts which are foreign currency deposit units (FCDU) accounts, to accept deposits and withdrawals related to both FCDU and Regular book accounts of participating banks

CIRCULAR LETTER Series of 1994

TO : All Commercial Banks

Please be advised that the Monetary Board, in its Resolution No. 612 dated July 8, 1994, authorized Citibank-Manila to allow its Domestic Dollar Transfer System (DDTS) clearing accounts which are foreign currency deposit units (FCDU) accounts, to accept deposits and withdrawals related to both FCDU and Regular book accounts of participating banks, subject to the following conditions:

1. that to exempt the banks participating in the DDTS from the provision of Section 2, Circular No. 1389, as amended, and as clarified under Circular Letter dated November 8, 1993, the purchase of foreign exchange and depositing the same to Citibank-FCDU is for the sole purpose of covering negative balance or overdraft that a participating bank may incur thereat; and

2. that the participating banks, at their end, observe the rule of separate accounting of FCDU funds as required under Section 85 of the aforecited Circular.

Please be guided accordingly.

GABRIEL C. SINGSON Governor