Our goal is to ensure a more organized and smoothly-functioning local FX market supportive of a flexible and market-determined exchange rate. The BSP acknowledges that a system of governance over the local FX market is key. Accordingly, it has proposed a governance framework where it shall oversee the FX market pursuant to its mandate to determine the exchange rate policy of the country.
The framework will allow industry players with legitimate economic reasons to establish a market in any particular currency pair. The framework will ensure compliance with laws, rules and regulations, and market-determined standards to instill discipline, integrity, and accountability among market participants and to uphold orderly market operation.