Citi Philippines is appointed sole settlement bank for domestic dollar transfers

MANILA, Philippines — Citi Philippines marks its 26th year of service to the industry as the country’s sole settlement bank for domestic dollar transfers. It was selected through a bidding process conducted by the Bankers Association of the Philippines (BAP).

BAP oversees the selection of industry players who can support the banking industry in the efficient clearing and settlement of dollar transfers domestically. The selection is based on the key criteria of efficient operations and service as well as credit availability. 

“We are honored to be given the opportunity to demonstrate Citi’s leadership in cash management solutions. Citi is strongly committed to delivering full operational availability and best-in-class solutions to member banks. This mandate represents our 26th year as the sole settlement bank for domestic dollar transfers and we look forward to continue servicing the banking industry,” Citi Philippines CEO Aftab Ahmed said.

Clearing of the domestic dollar transfers will be performed by the Philippine Clearing House Corp. (PCHC), having been appointed also by the BAP as the sole clearing operator.

PCHC has been the country’s clearing operator for checks since 1980, and for electronic peso transfers via PESONet since 2017.

The appointment of Citi Philippines and PCHC, as the settlement bank and clearing operator, respectively, will take effect on August 17 and will end in five years.

“This renewed partnership with Citi Philippines is most welcome. It is an additional opportunity for PCHC to serve the banking industry. PCHC will always endeavor to fulfill its mandate to work with Citi in delivering its services to member banks participating in the nationwide clearing of both peso and dollar-denominated electronic fund transfers/exchanges. We continue to strive in making our payment gateway world-class,” PCHC president and CEO Emmanuelle Barcena said.

The Philippine Dollar Domestic Transfer System (PDDTS) clears and settles transactions daily from 47 participating banks, including the Bangko Sentral ng Pilipinas. The flows come from the Interbank FX flows and commercial transfers from the member banks. 

With this payment capability being settled domestically, dollar transfers are settled on the same day.

“This 2020, the Bankers Association of the Philippines is completing its third decade of implementing the Philippine Domestic Dollar Transfer System. We are looking forward to a continuing partnership with Citibank as the settlement bank and welcome the Philippine Clearing House Corporation as the PDDTS operator commencing August 17. The BAP and its reputable partners are fully committed to pursuing efficient and effective banking services,” BAP president Cezar Consing said.

For more information, please visit the website at www.citigroup.com.