The Bangko Sentral ng Pilipinas (BSP) will reactivate the Currency Risk Protection Program (CRPP). First introduced in December 1997, the CRPP is a non-deliverable forward hedging facility which is aimed at alleviating demand pressures in the foreign exchange spot market from borrowers seeking to hedge their future foreign exchange exposures.
Under the facility, parties agree that, on maturity of the forward contract, only the net difference between the contracted forward rate and the spot rate shall be settled in pesos. The BSP will make the CRPP available to eligible borrowers through the commercial banks.
The BSP will update said program, particularly the eligibility requirements, to reflect more liberalized rules.