Purchase in foreign exchange of Philippine Debt Paper by local banks

CBP CIRCULAR LETTER Series of 1992

TO : All Commercial Banks

This is to clarify that Central Bank Circular No. 1164, Series of 1987, which we are quoting hereunder as follows, shall still govern the purchase in foreign exchange of Philippine Debt Paper by local banks:

"1. Purchases in foreign exchange of Philippine Debt Paper by local banks cannot be sourced from regular accounts;

"2. Purchases in foreign exchange of Philippine Debt Paper by local banks may not be sourced from foreign currency deposit accounts without the prior approval of the Central Bank (through the Foreign Exchange Regulations Department (FERD); and

"3. Applications for such purchase shall be submitted to the Central Bank through the Foreign Exchange Regulations Department (FERD). The approval required under this Circular should first be obtained prior to requesting for approval by the Central Bank Debt Restructuring Office of the assignment of Central Bank Debt Paper."

Please be guided accordingly.

JOSE L. CUISIA, JR. Governor