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RA 265 Section 79

Rates applicable to purchases and sales of exchange by the Banks.

Section 79

SEC. 79. Rates applicable to purchases and sales of exchange by the Banks.—The Monetary Board shall determine the minimum and maximum rates at which, the banks may buy spot exchange, and the maximum and minimum rates at which they may sell spot exchange, but the rates thus established for each currency shall not differ from the respective legal parity by more than one per cent, unless in any given case a greater divergence from parity exists in foreign markets. The banks shall not collect any additional commissions or charges other than actual telegraphic or cable costs incurred by them. The rates to be used by the banks for other types of exchange transactions shall be based on their spot exchange rates and shall not differ from such rates by margins greater than those considered reasonable by the Monetary Board: Provided, however, That the Board may at any time specifically fix such margins. The Monetary Board shall issue such rules and regulations as may be necessary to implement the provisions of this paragraph. The rates established in accordance with the provisions of this section shall not apply to exchange transactions with the Central Bank. Such transactions shall be made at the rates established in accordance with the provisions of section 76 of this Act.

Read the full instrument → · Open the chapter this section belongs to: CHAPTER IV.—INSTRUMENTS OF CENTRAL BANK ACTION →

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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