The Philippines maintains a free-floating exchange rate regime with the Philippine pesos (PHP) exchange rates determined on the basis of supply and demand in the foreign exchange market.

The Bangko Sentral ng Pilipinas (BSP) Monetary Board is responsible for all foreign exchange regulations.

Import/Export of Currencies

Philippine Currency – For amounts above PHP10,000, prior authorization is required from the BSP to import or export Philippine notes and coins, checks, money orders, or other bills of exchange drawn against banks operating in the country.

Foreign Currency - There are no limits or restrictions on the amount of foreign currency or other foreign exchange-denominated bearer monetary instruments (for example, traveler’s checks) that may be brought in or out of the Philippines. However, for amounts exceeding USD10,000 or its equivalent, a BSP Foreign Currency and Other Foreign Exchange-Denominated Bearer Monetary Instruments Declaration Form must be filled out. The form is available at the Bureau of Customs desk at all international airports and seaports.

Domestic/Foreign Currency Accounts

Resident Accounts – Residents are allowed to hold foreign currency accounts domestically. Those earning foreign exchange are also allowed to maintain foreign currency accounts abroad.

Nonresident Accounts – Nonresidents are permitted to hold foreign currency accounts. Nonresident PHP deposit accounts are also allowed, provided these are funded by inward remittances in foreign currency or by peso income or proceeds from nonresidents' assets located in the Philippines.

Borrowing/Lending

Domestic Borrowing – There are no limits on Philippine residents, including resident foreign companies, borrowing foreign currency from locally-held foreign-currency deposit units (FCDUs) to finance letters of credit, purchase orders, sales contracts, or anticipated foreign-exchange receipts. There are no restrictions on domestic borrowing by foreign companies. In line with international standards for classifying loans, domestic borrowings include foreign currency loans obtained from domestic sources.

Offshore Borrowing - Resident companies intending to borrow from offshore sources must register their foreign borrowing plans through the BSP’s International Operations Department. Some types of foreign loans require both registration and prior approval of the BSP. (Please refer to the link below on BSP Rules on Foreign Loans.)