Travelers now allowed to bring out up to P50K

MANILA, Philippines - Travelers to and from the Philippines would be allowed to bring in and out as much as P50,000 worth of legal tenders starting next month, the Bangko Sentral ng Pilipinas (BSP) said yesterday.

BSP officer-in-charge Vicente Aquino issued Circular 922 series of 2016 announcing the amendment of the rules on cross-border transfer of local currency.

“A person may import or export, or bring with him into or take out of the country, or electronically transfer, legal tender Philippine notes and coins, checks, money order and other bills of exchange drawn in pesos against banks operating in the Philippines in an amount not exceeding P50,000 without prior authorization from the BSP,” Aquino said.

According to Aquino, amounts in excess of the limit would require prior written authorization from the BSP.

The circular is set to take effect 15 days from publication in a newspaper of general circulation.

The higher limit also applies to electronic transfer or the system where the authority to debit or credit an account whether bank, business or individual is provided by wire, with or without a source document being mailed to evidence the authority.

Likewise, the peso amount of the International Passenger Service Charge (IPSC) refunded to outbound exempt passengers is not included in the limit during the implementation of the refund of travel, airport, and other trade related taxes.

The BSP has been implementing a series of foreign exchange liberalization measures in an effort to bring the public back to the banking system.

Aside from the increase in the limit for travellers, the central bank also raised the ceiling wherein Philippine residents could purchase up to $500,000 in foreign exchange instead of the previous limit of $120,000 without supporting documents.

For companies, the limit was higher at $1 million.

Likewise, the Monetary Board has approved the lifting of prior BSP approval and registration requirements for loans to be obtained by (NBQBs) from offshore sources, offshore banking units, and foreign currency deposit units (FCDUs) of banks.

BSP Deputy Governor Diwa Guinigundo earlier said the new policy would facilitate borrowing transactions of NBQBs to fund their operations and projects and better contribute to economic growth.

The BSP has been adopting measures to ease foreign exchange and documentary requirements on sending money abroad to lure depositors back to the banks.