Regulatory Alerts2012-01-01
Bank of Zambia Revision of Foreign Currency Risk Exposure Limits
The Bank of Zambia issued Circular 24/2012 to reduce overnight and intraday foreign currency risk exposure limits for commercial banks and financial institutions. The new regulations lower overnight overall and single limits to 15% and 10% of total regulatory capital, while intraday limits are set at 30% and 20% respectively. Institutions must maintain detailed records, submit weekly returns, and face daily penalties of 20% on excesses if not corrected within a five-day grace period.
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