BSP may further relax rules on forex


Posted at Aug 03 2012 06:46 PM | Updated as of Aug 04 2012 06:32 AM

MANILA, Philippines - Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco said they are considering further relaxing rules on bringing foreign currency out of the country.

Allowing US dollars and other foreign currencies to move freely out of the country may offset the negative effects of a potential surge in foreign portfolio investments, Tetangco said.

"More (foreign portfolio) funds may be going to the Philippines. Although there is no specific measure yet, we continue to evaluate if further liberalization of foreign exchange rules is needed to address the issue of capital inflows," he said.

As the US and Europe continue to face dismal economic prospects, the Philippines and other emerging markets becoming the focus of investors.

BSP data shows from January to July 20, foreign portfolio investments to the Philippines registered a net inflow of $1.9 billion, lower than the $2.7 billion in the same period last year.