Rules on carrying travel funds

By ATTY. IGNACIO BUNYE

August 15, 2010, 4:27pm

Ever wondered how much money you could bring while on travel abroad? Apparently, there are rules on how much money in pesos or in foreign currency you can bring outside (and inside) the country.

50 years of central banking in the Philippines

According to the Bangko Sentral ng Pilipinas, a person may import or export, bring in or take out of the country, or electronically transfer legal tender Philippine notes and coins, checks, money orders, or other bills of exchange drawn in pesos against banks operating in the Philippines in amounts not exceeding P10,000. This means that a person can bring outside the country P10,000 without any prior approval from the central monetary authority. He can also freely bring the same amount back to the Philippines.

A guide book of Philippine paper money;: A comprehensive illustrated valuation catalog of Philippine regular issue currency of the Spanish, U.S. and republican periods from 1852 to date

Prior authorization from the BSP is required for the export or import of Philippine currency exceeding P10,000.

Travelers should course their application for a permit through the BSP’s International Sub-Sector (ISS), headed by Managing Director Wilhelmina Mañalac.

But not everyone can actually get this permit, according to the ISS International Operations Department. There are only a few special cases in which the IOD has allowed the exit of more than the prescribed amount from the country.

Companies and individuals who could prove to the IOD that they will be bringing out Philippine money only for numismatic or collection purposes could merit a permit. A coin company based in Hong Kong was recently given a permit to import from the Philippines 12,000 pieces of P20 (worth P240,000) to be displayed as memorabilia at the Shanghai World Expo.

The IOD also issues permits to banks that need bills to test their newly constructed ATM machines abroad. However, the IOD clarified that these bills should be returned to the BSP after the testing period.

According to the BSP’s Center for Monetary and Financial Policy, headed by Director Francisco Dakila Jr., the peso’s status in the international market is the main reason behind this restriction. The CMFP pointed out that unlike the US dollar, the Japanese yen, or the euro, the peso is not internationalized.

This means that the peso is not used for international trade or as payment for foreign loans and investments, the CMFP said.

BANKING, CURRENCY AND FINANCE IN THE PHILIPPINE ISLANDS + THE AGRICULTURAL BANK FOR THE PHILIPPINE ISLANDS + THE PHILIPPINE POSTAL SAVINGS BANK + RAILROADS IN THE PHILIPPINE ISLANDS

Another reason behind the restriction is the BSP’s need to monitor the money supply in the country in pursuit of its primary objective of “promoting price stability conducive to a balanced and sustainable growth of the economy.”

With regard to foreign currency, there is no restriction or limit on the amount that a person may bring in or take out of the Philippines. However, the BSP has clarified that any person bringing in or taking out of the Philippines foreign currency in excess of US$10,000 or its equivalent must declare such fact in writing.

The individual should also provide information on the source of the money and the purpose of the transport of such currency using the prescribed Foreign Currency and Other Foreign Exchangement Denominated Bearer Monetary Instruments Declaration Form.

The form is available at the Bureau of Customs desk in the arrival/departure areas of all international airports and seaports.

Failure to do so shall subject the violator to sanctions, including confiscation of the foreign currency involved.

Note: You may e-mail us at totingbunye2000@gmail.com. Past articles may be viewed at http://speakingout.ph.