CBP Memorandum

December 1, 1953 CBP MEMORANDUM TO : Authorized Agent Banks No. 18-53 For your information and guidance, there is quoted hereunder extracts from a resolution approved by the Monetary Board at its meeting held today, December 1, 1953: "1) To amend Regulation No. 1, Part II, Article III, Sections 1 and 3, to read as follows: Foreign exchange allocation for a specific commodity may be utilized for that commodity or for any other commodity under the same category . In addition, allocations for items under the non-essential categories may be utilized for any commodity classified under the highly-essential and/or essential categories, but not vice versa. Excluded from these provisions are the exchange allocations established for flour, leaf tobacco and medicine. "2) To authorize agent banks to implement the above amended regulation provided that each action taken under this authority shall be reported to the Central Bank through the Bankers Committee. "3) To authorize agent banks to permit the extension of outstanding letters of credit established in 1953 either under Central Bank Regulations or by authority of a valid ICC license. Such action shall be reported to the Central Bank through the Bankers' Committee. "4) To authorize agent banks to permit producers and importers to utilize their current second semester 1953 quotas (through the establishment of letters of credit) up to and including January 20, 1954. "5) To reduce to 50% the 70% ratio which the commercial banks are required to maintain of their total letter of credit commitments to their net foreign exchange holdings, cash in vaults, excess reserves and securities, etc." (SGD.) M. CUADERNO, SR. Governor