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PRESIDENTIAL DECREE NO. 1453
PRESIDENTIAL DECREE NO. 1453 -
FURTHER AMENDING REPUBLIC ACT NUMBERED 6426, AS AMENDED, OTHERWISE
KNOWN AS THE FOREIGN CURRENCY DEPOSIT ACT OF THE PHILIPPINES
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WHEREAS,
under Presidential Decree No. 1035, the authority of certain depository
banks under Republic Act No. 6426, which have the necessary resources
and managerial competence, was expanded to enable said banks to engage
more actively in foreign exchange transactions;chanroblesvirtualawlibrary
WHEREAS, the objectives behind the issuance of P.D. 1035 could be more
readily achieved if said depository banks were allowed to freely engage
in foreign exchange trading and other similar transactions without
being unduly restricted by existing provisions of law, subject only to
the regulatory authority of the Monetary Board;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution, do hereby
order and decree that Republic Act No. 6426, as amended, be further
amended as follows:cralaw:red
Section 1. The first paragraph of Section 4 of
Republic Act No. 6426, as amended, is hereby amended to read as
follows: chanroblesvirtualawlibrary
"Sec. 4. Foreign currency cover requirements. —
Except as the Monetary Board may otherwise prescribe or allow, the
depository banks shall maintain at all times a one hundred percent
foreign currency cover for their liabilities, of which cover at least
fifteen percent shall be in the form of foreign currency deposit with
the Central Bank, and the balance in the form of foreign currency loans
or securities, which loan or securities shall be of short term
maturities and readily marketable. Such foreign currency loans may
include loans to domestic enterprises which are export-oriented or
registered with the Board of Investments, subject to the limitations to
be prescribed by the Monetary Board on such loans. Except as the
Monetary Board may otherwise prescribe or allow, the foreign currency
cover shall be in the same currency as that of the corresponding
foreign currency deposit liability. The Central Bank may pay interest
on the foreign currency deposit, and if requested shall exchange the
foreign currency notes and coins into foreign currency instruments
drawn on its depository banks." chanroblesvirtualawlibrary
Section 2. This Decree shall take effect immediately.
Done in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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