Whether you are arriving in the Philippines for business, pleasure or to relocate, most likely your first encounter with the local financial system will be at the airport. After you have cleared Immigration and Customs procedures you will need to exchange your foreign funds for sufficient Philippine Pesos to satisfy your immediate needs. US$200 will probably be sufficient and, if used carefully, will take you a long way. Once in the city there are any number of foreign exchange dealers as well as the banks where rates are competitive. Foreign exchange dealers can be found in and around most shopping malls and they generally keep retail hours. Most major department stores and hotels will also exchange foreign currency although their rates are not quite so good.

If you do decide to use a forex agency for exchanging your cash be aware that a number of such agencies - especially in the Malate-Ermita area are adept in confusing foreigners by having employees attempt to engage a foreigner in conversation while counting money. Remember once you walk out of the shop, a mistake cannot be rectified and any discrepancy is always in the favor of the shop. These problems have not been reported in the Makati area but prudence when counting money should always prevail no matter how many are waiting in the line behind you.

Travelers Cheques

If you intend to pay for goods or services using a traveler's cheque, please ask about acceptance before contracting a service. There is a reluctance on the part of many commercial establishments in the Philippines to accept such cheques although we have not observed any problem between hotels and guests who wish to pay in this manner.

Credit Cards

Most major credit cards are available in the Philippines including Visa, MasterCard, JCB, Amex and Diners. Of these, the first three are the most prevalent. Many establishments do not accept international credit cards - I.e. those cards issued outside of the Philippines. Again, it is wise to ask before contracting for a service for which payment by credit card is intended. The cost of money in the Philippines is much higher than internationally - around 25% p.a. and so many credit card acceptors add a premium for making payment by card - usually around 5% of the transaction price. While people from overseas may frown when confronted with this practice, it is solely related to the cost to the vendor of carrying the debt until payment is received.

Opening a Bank Account

Philippine commercial banks offer similar services to those found in most developed nations in retail and wholesale banking. Short term lending predominates and is largely for working capital and trade finance. Medium/long term lending is micro by comparison. E-Commerce and associated banking facilities are in their infancy but can be provided by a small number of banks. Security has been the limiting factor in the development of e-banking to date.

Personal: If you have a Bureau of Immigration "Visa", or equivalent, this should not be a problem provided you can pass the Banks points test requirement. If your passport carries a "visitors" stamp or renewal only then you will not be able to open a banking account but may be a signatory to a banking account.

Corporate: If you have incorporated than you will not have a problem. Where you intend to incorporate and have commenced the process there is a provision where a corporate account may be opened and where the signatories may not necessarily have "Visas" or equivalent but "Visitors" permit only and where one person, a non Filipino, may be identified as "Treasurer in Trust" for banking and Securities & Exchange Commission purposes provided there is an undertaking that the Treasurer in Trust will vacate that position in favor of a person, properly qualified, within a designated period of time after incorporation takes place.

Foreign currency banking: Provided you have the proper credentials a foreign currency banking account, hard currency, will be welcome and you should be rewarded with some interest on your deposit. Make sure you review the purpose of the deposit carefully as the repatriation of foreign currency is not so welcome and may have penalties. Read the fine print when opening the account and discuss all aspects with your accountant with your respective bank manager

Warning:
Short-cuts, there are any number of stories about foreigners who have opted to open a banking account in the names of a trusted Filipino agent, have rued the day and lost their money. How do you explain that one at home?

Debit Cards and ATM Facilities

ATM machines are not as widespread in the Philippines as in many other Asian countries although they can be found, especially in major tourist and business areas of Manila, in the provincial capitals and in some smaller cities. Maestro and Cirrus are the two systems most commonly available.

Withdrawal limits can vary but are usually around P20,000 a day. The ATM should accept withdrawals from all recognized cards displayed. Be aware that not all such machines accept international cards.

Outward Remittances

Non resident foreigners (i.e. tourists) can take out the balance of what they cashed during a visit to the Philippines provided they furnish proof of encashment in the first place through an authorized agent bank but not through a money changer.

Resident foreigners can remit out only P5,000 a month through their bank without special application to the monetary authorities.

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