Filipinos can now buy up to $120,000 w/o docs

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has further relaxed the foreign exchange rules to encourage dollar outflows and, hopefully, keep the peso from further appreciating.

On Thursday, April 18, the BSP said Philippine residents could now buy from banks up to US$120,000 for tourism, education, and medical purposes without having to present supporting documents.

The previous ceiling was $60,000.

In a briefing on Thursday, April 18, BSP Deputy Governor Nestor Espenilla Jr said this move is meant to simplify transactions between banks and customers.

The BSP said over-the-counter and non-trade-related dollar purchases by credit card companies and airlines have increased to $1.4 billion in the January to October 2012 from $800 million in 2008. This was attributed largely to well-to-do families sending their children abroad for schooling, going for vacation, or paying for medical bills abroad.

The new rules also increased to $10,000 from $5,000 the amount of foreign currency that departing tourists and balikbayans can buy using unspent pesos without proof of previous sale.

The BSP, however, maintained the $60 million limit that Filipinos can invest abroad. The scope has widened to include real estate properties, foreign stocks, and offshore mutual funds.

All these are meant to create demand for the dollar and counter the inflow of investment and remittance dollars, which in turn makes the peso stronger.

The peso, which appreciated exponentially as investors flocked to the Philippine capital markets amid the glowing performance of the local economy, has been worrying local economists, dollar earners like exporters, business process outsourcing (BPO) firms, as well as Filipinos who depend on remittances sent by loved ones working or living abroad. 

The appreciation of the peso is expected to continue beyond 2013. – Rappler.com