Bangko Sentral Governor Benjamin Diokno SCREENGRAB FROM ZOOMThe Bangko Sentral ng Pilipinas has adjusted the net open foreign exchange position (NOP) ceiling for banks in order to increase liquidity in the market, Governor Benjamin Diokno announced on Thursday. Since then, the domestic foreign exchange market has grown significantly, the uptick in the annual volume of transactions mirroring the 50-percent rise in the annual volume of trade transactions. "The increase in the net open position limit is appropriate since banks can have ample liquidity in the market and the hefty GIR can adequately service client demand for foreign exchange," he stressed. Diokno said the adjustment was made possible by the Monetary Board approval of several amendments to the NOP limit framework for banks last May 20. "These amendments to the framework for the management of banks' open foreign exchange positions aim to make the calculation and measurement of a bank's net open foreign exchange position more risk-based," he pointed out.

Source: Manila Times June 03, 2021 17:03 UTC