Citibank N.A. Philippine Branch (Citi Philippines) announced it won in a bidding process conducted by the Bankers Association of the Philippines (BAP) to be the country’s sole settlement bank for domestic dollar transfers.
The BAP oversees the selection of industry players who can support the banking industry in the efficient clearing and settlement of dollar transfers domestically, Citi Philippines explained. The selection is based on the key criteria of efficient operations and service as well as credit availability.
Citi Philippines CEO Aftab Ahmed said the financial services provider is now “given the opportunity to demonstrate Citi’s leadership in cash management
solutions.”
Ahmed said the company is “strongly committed” to delivering operational availability and solutions to member banks of the BAP.
Clearing of the domestic dollar transfers will be performed by the Philippine Clearing House Corp., having been appointed likewise by the BAP as the sole clearing operator. The PCHC has been the country’s clearing operator for checks since 1980 and for electronic peso transfers via PESONet since 2017.
The appointment of Citi Philippines and PCHC as the settlement bank and clearing operator, respectively, will take effect on August 17 and will end in five years.
PCHC President and CEO Emmanuelle E. Barcena was quoted in a statement as saying the “renewed partnership with Citi Philippines is most welcome.”
“It is an additional opportunity for PCHC to serve the banking industry,” Barcena said. “PCHC will always endeavor to fulfill its mandate to work with Citi in delivering its services to member banks participating in the nationwide clearing of both peso and dollar denominated electronic fund transfers/exchanges. We continue to strive in making our payment gateway world-class.”
The Philippine Dollar Domestic Transfer System (PDDTS) clears and settles transactions daily from 47 participating banks, including the Bangko Sentral ng Pilipinas. The flows come from the Interbank FX (foreign exchange) flows and commercial transfers from the member banks. With this payment capability being settled domestically, dollar transfers are settled on the same day.
BAP President Cezar P. Consing was quoted in the same statement as saying the association is completing this year its third decade of implementing the PDDTS.
“The BAP and its reputable partners are fully committed to pursuing efficient and effective banking services,” Consing said.