Macro-Prudential Measure for Handling Non-Deliverable Forwards Involving the Philippine Peso

March 6, 2013BSP CIRCULAR NO. 790-13SUBJECT:Macro-Prudential Measure for Handling Non-Deliverable Forwards Involving the Philippine Peso The Monetary Board, in its Resolution No. 365 dated 28 February 2013, approved the following governing guidelines on the macro-prudential measure for handling non-deliverable forwards (NDFs) involving the Philippine Peso.SECTION 1. Subsection X625.7 (2008-X602.19 of the Manual of Regulations for Banks (MORB), is hereby amended to read as follows:"§ X625.7.  Non-deliverable forward contracts with non-residents involving the Philippine Peso. NDF contracts to sell FX to non-residents involving the Philippine Peso shall be covered by the provisions of Subsection 1625.5 Appendix ___ of the MORB."SECTION 2. Subsection 1625.5 (2008-1602) of the MORB, and Section 92 of the Manual of Regulations on Foreign Exchange Transactions requiring prior BSP clearance for forward contracts involving sale of foreign exchange to non-residents with no full delivery of principal, including cancellations, roll-overs/renewals, are hereby deleted.SECTION 3. Transitory Provisions. — Banks which are presently in excess of the NDF exposure limits shall be given two (2) months from the effectivity of this circular to comply with the...