The Bangko Sentral ng Pilipinas (BSP) said it has amended its repurchase (repo) and reverse repurchase (RRP) rules to align with the Global Master Repurchase Agreement (GMRA), a move aimed at expanding the domestic capital market and boosting liquidity.
All repo and RRP transactions with the central bank will adopt GMRA standards, as stipulated under Under Circular No. 1217 approved by the Monetary Board on August 14 and signed by BSP Governor Eli Remolona Jr. on August 22.
Both facilities are core tools of monetary policy: in repos, the BSP buys securities with an agreement to resell them; in RRPs, it sells securities with a repurchase commitment.
The amendments introduce US dollar-denominated repos, with participating banks and quasi-banks covering applicable taxes and charges.
The circular also revises settlement procedures for government securities, overnight lending and deposit facilities, and clearing rules for dishonored checks.
The new regulations take effect 15 days after publication in major daily newspapers.
The BSP first announced its GMRA plan in late 2024 as part of a broader push to deepen the capital market. The framework complements the live implementation of peso interest rate swaps in November last year, and is expected to enhance the delivery of Treasury bonds to banks engaged in repo deals.
The GMRA is one of five ongoing reforms the BSP and other agencies are rolling out to strengthen capital market liquidity.
Together with revived interest rate swaps and an enhanced repo market, the initiative seeks to provide banks with deeper trading options, broaden access to liquidity, and build resilience in the local bond market.
