BSP currency exchange facility benefits 1,575 OFWs from Libya

MANILA, Philippines - The currency exchange facility benefitted a total of 1,575 overseas Filipino workers (OFWs) who were hurriedly repatriated from the strife-torn Libya, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

BSP Governor Amando Tetangco Jr. said in a statement that 1,575 OFWs who were evacuated from Libya due to the political conflict exchanged P12.31 million worth of Libyan dinar under the currency exchange facility that was made available last March.

Tetangco said the facility that would be terminated starting today allowed OFWs from Libya to exchange their Libyan dinars up to a maximum of P10,000 each at the BSP’s head office, BSP branches in the regions, and with authorized agent banks.

OFWs were required to present documentary proof of their travel from Libya such as passport or valid travel papers issued and signed by the Philippine embassy and stamped with the date of arrival in the Philippines. They were given seven banking days from date of their arrival or from the date of the issuance of the BSP memorandum to all banks on the implementation of the facility.

“The BSP Cash Department, its regional offices or branches, and authorized agent banks shall no longer accept Libyan dinars for conversion to pesos effective July 1,” he stressed.

Prior to the launch of the Libyan dinar currency exchange facility, the local currency in the war-torn country led by the former strongman Moammar Gadhafi was not convertible to Philippine pesos.

The BSP introduced the facility last March as part of the efforts of the government to assist OFWs displaced by the conflict in Libya.

The central bank had previously established a currency exchange facility during similar emergency situations in the Middle East. The first was in the 1990s during the Kuwait-Iraq war, the second in 2003 in connection with the US-Iraq conflict, and the third in 2006 in connection with the Israel-Hezbollah conflict.

Data from the Department of Foreign Affairs (DFA) showed that there are about 26,000 Filipinos in Libya wherein protests calling for the replacement of Libyan strongman Moammar Gadhafi continue to mount. The government has earmarked P130 million for the repatriation of about 13,000 OFWs displaced by the conflict in Libya.

There are only 16 foreign currencies convertible with the BSP including the US dollar, Japanese yen, British pound, Hong Kong dollar, Swiss franc, Canadian dollar, Singapore dollar, Australian dollar, Bahrain dinar, Kuwait dinar, Saudi Arabian rial, Brunei dollar, Indonesian rupiah, Thai baht, the United Arab Emirates’ dirham, the European Monetary Union’s euro, the Chinese yuan, and the Korean won.

Other currencies not convertible with the BSP include Argentina’s peso, Brazil’s real, Denmark’s kroner, India’s rupee, Malaysia’s ringgit, Mexico’s new peso, New Zealand’s dollar, Norway’s kroner, Pakistan’s rupee, South Africa’s rand, Sweden’s kroner, Syria’s pound, Taiwan’s dollar, and Venezuela’s bolivar.

OFW remittances grew by 8.2 percent to a record level $18.76 billion last year from $17.35 billion in 2009 due to the continued demand for skilled Filipino workers abroad as well as the expansion of remittance centers abroad giving OFWs more options to send money to their loved ones in the Philippines.

Due to the conflict in the Middle East and North African (MENA) states as well as the disaster in Japan has prompted the BSP to slash the projected growth in OFW remittances to 7 percent or $20.1 billion instead of 8 percent or $20.2 billion this year and to 5 percent or $21.1 billion next year.