Foreign Exchange Agreement Template for Philippines

The Foreign Exchange Agreement is essential for entities engaging in foreign exchange transactions within the Philippine jurisdiction. It establishes the legal framework for currency trading activities while ensuring compliance with Bangko Sentral ng Pilipinas (BSP) regulations and relevant Philippine laws. This document is typically used when establishing trading relationships between financial institutions and their clients, or between two financial institutions. It covers crucial aspects such as trading mechanisms, settlement procedures, regulatory compliance, risk management, and reporting requirements. The agreement is particularly important given the BSP's strict oversight of foreign exchange transactions and the need to maintain stability in the Philippine foreign exchange market.

1. Parties: Identification of the parties entering into the agreement, including licensing and regulatory status

2. Background: Context of the agreement and relationship between the parties

3. Definitions: Definitions of technical terms, market conventions, and regulatory references used in the agreement

4. Scope of Services: Description of foreign exchange services covered under the agreement

5. Trading Arrangements: Procedures for executing forex transactions, including dealing methods and confirmation processes

6. Settlement and Payment: Terms and procedures for settlement of transactions, including payment instructions and cut-off times

7. Representations and Warranties: Standard representations regarding legal capacity, regulatory compliance, and authority to enter transactions

8. Risk Disclosures: Mandatory risk warnings and disclosures as required by Philippine regulations

9. Compliance with Regulations: Obligations to comply with BSP regulations and other applicable laws

10. Events of Default: Circumstances constituting default and consequences

11. Termination: Provisions for termination of the agreement and consequences

12. Governing Law and Jurisdiction: Philippine law as governing law and jurisdiction for disputes