(Bloomberg) -- The Philippine central bank on Wednesday announced a new set of foreign exchange guidelines seen to strengthen its market surveillance weeks after the peso neared a record low.
The Monetary Board has approved amendments to FX regulations to allow the central bank to gather “more accurate and relevant” information on FX transactions, the Bangko Sentral ng Pilipinas said in a statement. The move will “promote and maintain price stability and ensure financial stability and effective supervision of banks,” it said.
Among the key changes, the BSP defined reports that are not compliant with its reporting standards such as those that are erroneous, delayed and unsubmitted under its manual of regulations on foreign exchange transactions.
“While clearer penalties for reporting violations tighten things up a bit, there’s no mention of limitations on FX transactions,” Robert Dan Roces, chief economist at Security Bank Corp. said in reply to questions. The new regulations strengthen the central bank’s oversight of the market by improving reporting and compliance for FX transactions, but “not necessarily restrict them,” Roces said.
Without providing details, the central bank said it revised the monetary penalties for reporting violations based on reporting entities and classification. The central bank said the maximum monetary penalty is 1 million pesos ($17,143) for each transactional violation or 100,000 pesos per calendar day for violations of a continuing nature.
The Philippine peso was up at 58.345 to a dollar in Manila trading Wednesday, extending recovery from losses in June when the currency fell near the record-low 59 level.
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