Regulatory Alerts2012-11-09
Regulation on Foreign Exchange Risk
The Central Bank of the Republic of Kosovo has issued this regulation to limit foreign exchange risk exposure for all licensed banks dealing in foreign currencies. The rule mandates that a bank's net open position in any single currency must not exceed 15 percent of its Tier 1 capital, while the aggregate net open position across all currencies is capped at 30 percent. Banks establishing active foreign exchange trading desks must notify the regulator ten days prior to commencement, with non-compliance subject to statutory remedial measures and civil penalties.
Share