Under the framework, non-discriminatory prudential rules shall cover marketdetermined exchange rates, pre- and post-trade transparency and efficient settlement of the peso leg central bank money. The framework will depend on resilient and reliable infrastructure and will require effective audit and review. The BSP also envisions that there will be effective mechanisms for market participants to handle and respond to any improper practice and behavior.
In addition, we have deployed macroprudential measures during the early stages of strong capital inflows and even earlier to help tighten regulatory screws. These include concentration limits on real estate lending, limits on open FX positions, and higher risk weight for NDF transactions.