The Philippine Domestic Dollar Transfer System (PDDTS) is the national clearing and settlement infrastructure for interbank US Dollar (USD) transactions within the Philippines. Operated by the Philippine Clearing House Corporation (PCHC) and settled through Citibank, N.A., PDDTS enables participating banks to transfer USD funds electronically with speed, safety, and certainty.

 

What began in 1991 as a response to the need for faster remittance clearing has evolved into a comprehensive multi-service platform supporting the domestic USD payment ecosystem.

 

A Trusted Platform, Built Over Time

 

PDDTS originated in 1991 as the Foreign Exchange Clearing and Settlement System, an initiative of the Bankers Association of the Philippines (BAP) to accelerate the clearing of remittances from Overseas Filipino Workers (OFWs). It became fully electronic in 1994, giving rise to what is now the Philippine Domestic Dollar Transfer System.

 

In 2020, Citibank, N.A. was reaffirmed as the system’s exclusive Settlement Bank, while PCHC was appointed as the sole System Operator for all services under PDDTS.

 

Core PDDTS Services

 

PDDTS currently offers three key services to address varying payment needs and settlement models:

 

1. Real-Time Gross Settlement (RTGS)

 

• For high-value, time-critical USD transactions:

• Payments are processed and settled individually and in real time via Citibank.

• Funds are credited instantly to the beneficiary bank, providing speed and finality.

 

    2. End-of-Day (EOD) Net Settlement

 

• For bulk or recurring USD transactions:

• Banks transmit USD transactions to PCHC in batch files throughout the day.

• At cut-off, PCHC performs a netting process to compute each bank’s final position.

• Net positions are submitted to Citibank for end-of-day settlement.

 

     3. Payment-versus-Payment (PvP) FX Settlement

 

• For USD-to-PHP foreign exchange transactions:

• PvP supports simultaneous settlement of both currencies using a Delivery-versus-Payment (DvP) model.

• Ensures that the USD leg and PHP leg are both settled or neither is, minimizing counterparty and principal risk.

• Offers secure, synchronized settlement for USD-PHP FX trades between participating banks.

 

With these services, PDDTS continues to play a vital role in modernizing the Philippines’ financial market infrastructure — enabling efficient, secure, and trusted clearing of domestic USD payments and foreign exchange.