BSP: FX forwards must have legitimate economic purpose

THE BANGKO SENTRAL ng Pilipinas (BSP) reminded authorized agent banks (AABs) that non-deliverable foreign exchange (FX) derivative transactions must serve legitimate economic purposes. In a memorandum signed by BSP Governor Eli M. Remolona, Jr., the central bank told AABs to restrict the use of such instruments, especially non-deliverable forward transactions (NDFs) where banks sell foreign […]