THE PHILIPPINES

Philippine Foreign-Exchange Controls Delayed: The extensive liberalization of the Philippines’ foreign-exchange controls scheduled to take effect last week has been delayed and could be modified before any implementation. The reform program, announced early last month, called for the elimination of all restrictions on the sale and movement of foreign exchange. Exporters are now required to sell 98% of their foreign-exchange earnings to local banks, which--in turn--sell them to the government’s central bank. When exporters subsequently repurchase foreign exchange to pay for any imports, they pay a higher price. Under the proposals under review, exporters would be allowed to keep up to 40% of their foreign-exchange earnings, a change designed to reduce foreign-exchange transactions and costs. The proposed reforms were developed to promote trade and reduce black market commerce.