The Bangko Sentral ng Pilipinas (BSP) has reminded banks to ensure that non-deliverable foreign exchange derivatives are used only for legitimate economic purposes and not for speculation.
In Memorandum 2026-022, the BSP directed authorized agent banks to strictly comply with rules governing their own FX derivatives transactions, reinforcing earlier reforms under Circular 1212.
BSP Governor Eli Remolona Jr. said such instruments must be backed by proper documentation and underlying economic activity, such as hedging investments.
The central bank warned against transactions without identifiable exposure or those used for speculative or arbitrage-driven peso positions.
It added that the restrictions apply to both new contracts and renewals of non-deliverable FX derivatives involving the peso.
Source: PhilNews24 | June 6, 2026
BSP REITERATES RULES ON LEGITIMATE USE OF FX DERIVATIVES
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