CBP Memorandum

March 20, 1952 CBP MEMORANDUM TO : Authorized Agents The directive to all authorized agents embodied in our letter dated November 16, 1951 requiring the maintenance of a ratio of 70% between the total of net foreign exchange assets, cash in vault, excess reserves, and securities other than those which have been utilized as part of the required reserves for deposit liabilities, and the total outstanding import letters of credit is hereby amended to include packing credit overdraft among these assets. In determining the required ratio, there shall be excluded from the sum total of import letters of credit outstanding letters of authority issued in connection with United States Mutual Security Agency (formerly ECA) imports and letters of credit covering imports under the Philippines-Japan open account. The packing credit overdraft thus authorized shall be limited to those advances in current account granted to bona fide exporters whose export letters of credit are already held by and actually in possession of the bank; provided, that the export credits are in U.S. dollars only, and that the packing credit overdraft does not exceed 80% of the export credits on hand in each and every case; provided further, that overdraft granted against credits covering exports under the Philippines-Japan open account are excluded. LLphil Authorized Agents utilizing packing credit overdraft as indicated above for the purpose referred to in this memorandum are hereby required to submit every Monday to the Department of Supervision & Examination, Central Bank of the Philippines, a list of export credits on hand as of the close of business every Friday preceding under which packing credit overdrafts are granted to exporters and the total amount of advances made under each credit. The list shall give the following details: 1. Name of exporter (beneficiary); 2. Name of opening bank; 3. Date of the credit; 4. Amount; 5. Goods covered, indicating quantity or volume; 6. Contract export price; 7. Approximate date of shipment and expiry date of credit; 8. Whether goods like sugar, copra, etc. are covered by quedans issued by bonded warehouse or are stored in customer's warehouse; 9. Current price in the local market of goods covered; 10. Other items of the credit. Net foreign exchange holdings representing the difference between gross foreign exchange assets and foreign exchange liabilities shall be determined in the manner set forth in our letter of November 16, 1951. This amendment takes effect immediately. (SGD.) M. CUADERNO, SR. Governor