Philippines relaxes foreign exchange regulations

MANILA, Philippines (Xinhua) - The Bangko Sentral ng Pilipinas (BSP) has further relaxed foreign exchange regulations to give wider access to non-residents to the local stock market.

The newly approved memorandum circular will facilitate the entry and exit of foreign investors in the country ahead of the Southeast Asian region's economic integration in 2015.

"The new liberalization policy aims to facilitate cross border investment transactions consistent with our commitments under the ASEAN Economic Blueprint 2015," BSP Deputy Governor Diwa Guinigundo said today.

Among the changes include allowing the registration of custodian banks of foreign investments in shares of foreign companies that may be listed on the Philippine Stock Exchange (PSE) in the future.

The BSP also approved the conversion to foreign currencies of money made by foreign investors from the sale of locally-listed shares.

These two changes will pave the way for foreign investors to invest in foreign companies that are listed on the PSE.

"The listing and trading of non-resident securities in the domestic market can promote greater confidence in the economy and its capital market," Guinigundo said.