Extensions to letters of credit (L/Cs) will become easier to obtain in the Philippines under new foreign exchange liberalisation measures introduced by the Bangko Sentral ng Pilipinas (BSP).

The measures are aimed at boosting the country's investment climate and bolstering currency stability.

L/C extensions

Until now, BSP approval has been required for L/C extensions beyond twelve months.

Now the central bank has lifted its prior BSP approval requirement for extensions beyond one year of the validity of L/Cs.

Forex issues

Other measures introduced at the same time include lifting the requirement to obtain prior BSP approval for foreign loans for certain infrastructure projects.

The central bank is also lifting the three-day period within which foreign exchange purchased for import payments must be remitted to the offshore beneficiary.

The new foreign exchange measures come a few weeks after the BSP introduced several measures aimed at curbing currency speculation.

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