AN ACT TO AUTHORIZE THE CENTRAL BANK OF THE PHILIPPINES TO ESTABLISH A MARGIN OVER BANKS'' SELLING RATES OF FOREIGN EXCHANGE.
Download as PDF
Download as Word
Collections
Create new Collection
Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
AN ACT TO AUTHORIZE THE CENTRAL BANK OF THE PHILIPPINES TO ESTABLISH A MARGIN OVER BANKS'' SELLING RATES OF FOREIGN EXCHANGE.
Republic Act No. 2609
July 16, 1959
Case Overview and Summary
Summary of Republic Act No. 2609Authorizes the Central Bank of the Philippines to Establish a Margin Over Banks' Selling Rates of Foreign Exchange
- Section 1: Allows the Central Bank to establish a uniform margin of up to 40% over banks' selling rates of foreign exchange, subject to certain conditions:
-- Margin can only be changed once a year, except upon recommendation of the National Economic Council and approval of the President.
-- Margin is intended to curtail excessive demand on international reserves.
-- Monetary authorities shall take steps for a four-year program of gradual decontrol.
- Section 2: Exempts the following from the margin:
-- I. Drugs and medicines (with detailed list of exempted items)
-- II. Medical, dental, and hospital supplies (with detailed list of exempted items)
-- III. Fertilizers, soil conditioners, and fertilizer components
-- IV. Spare parts for agricultural industries
-- V. Textbooks, reference books, religious books, and technical/scientific books (with conditions)
-- VI. Scientific and technical equipment and materials for research (with conditions)
-- VII. Newsprint imported by publishers
-- VIII. Cinematographic films, raw materials, and equipment for local movie production
-- IX. Canned white salmon, sardines, corned beef, raw cotton, and breeding/dairy cattle (with conditions)
-- X. Canned condensed milk with no local substitute
-- XI. Cyanide, metallurgical reagents, grinding balls, explosives, and dynamite for authorized end-users
-- XII. Materials for manufacturing containers for local food products (if not locally produced)
-- XIII. Seeds for planting purposes (with detailed list and conditions)
-- XIV. Spare parts for vessels of Philippine registry
-- XV. Poultry and animal food ingredients (if not locally produced)
-- XVI. Spare parts for commercial aircraft of Philippine registry
-- XVII. Unassembled kerosene lamps and fishing paraphernalia for end-users
-- XVIII. Urea formaldehyde for plywood and hardboard manufacturing
-- XIX. Payment of premiums by veterans on U.S. life insurance policies
-- XX. Spare parts for machineries used by cottage industries
- Section 3: Exempts liquidation of drafts under existing letters of credit, contractual obligations, repayment of government loans, and importation of machineries/equipment for public utilities.
- Section 4: Requires importers to declare true purchase price and landed cost, and not fix unreasonable prices.
- Section 5: Proceeds from the margin accrue to the Central Bank.
- Section 6: Prohibits selling or transferring foreign exchange obtained from government agencies.
- Section 7: Authorizes the Monetary Board to promulgate rules and regulations.
- Section 8: Penalties for violations include fines up to 20,000 pesos, imprisonment up to 2 years, deportation for aliens, and forfeiture of right to purchase foreign exchange.
- Section 9: Severability clause.
- Section 10: Effective until December 31, 1964.
Amends
n/a
Amended by
n/a
Tags
Statutes
Republic Acts
Central Bank of the Philippines
foreign exchange
margin
selling rates
drugs and medicines
medical supplies
fertilizers
spare parts
textbooks
scientific equipment
newsprint
cinematographic films
canned goods
raw cotton
livestock
cyanide
explosives
containers
seeds
vessels
poultry feed
aircraft
fishing paraphernalia
plywood
hardboard
life insurance
cottage industries
letters of credit
contractual obligations
public utilities
importers
purchase price
landed cost
pricing
penalties
fines
imprisonment
deportation
severability
Law
AN ACT TO AUTHORIZE THE CENTRAL BANK OF THE PHILIPPINES TO ESTABLISH A MARGIN OVER BANKS'' SELLING RATES OF FOREIGN EXCHANGE.
Republic Act No. 2609
•July 16, 1959
REPUBLIC ACT No. 2609
AN ACT TO AUTHORIZE THE CENTRAL BANK OF THE PHILIPPINES TO ESTABLISH A MARGIN OVER BANKS' SELLING RATES OF FOREIGN EXCHANGE.
Section 1. The provisions of any law to the contrary notwithstanding when and as long as the Central Bank of the Philippines subjects all transactions in gold and foreign exchange to licensing in accordance with the provisions of section seventy-four of Republic Act Numbered Two hundred sixty-five, the Central Bank, in respect of all sales of foreign exchange by the Central Bank and its authorized agent banks, shall have authority to establish a uniform margin of not more than forty per cent over the banks' selling rates stipulated by the Monetary Board under section seventy-nine of Republic Act Numbered Two hundred sixty-five, which margin shall not be changed oftener than once a year except upon the recommendation of the National Economic Council and the approval of the President. The Monetary Board shall fix the margin at such rate as it may deem necessary to effectively curtail any excessive demand upon...
Login to see full content
Amends
n/a
Amended by
n/a