Regulatory Alerts1996-01-01
Banking and Financial Services (Foreign Exchange Risk Management and Exposure) Regulations, 1996
Issued by the Government of Zambia under the Banking and Financial Services Act, these regulations mandate all licensed banks and financial institutions to establish comprehensive foreign exchange risk management frameworks. Institutions must implement sound risk policies, daily monitoring systems, and independent audits while strictly capping overall foreign exchange exposure at twenty-five percent of regulatory capital and single-currency exposure at twenty percent. The Bank of Zambia retains authority to impose stricter limits and requires institutions to submit detailed monthly position reports using standardized schedules to ensure ongoing prudential compliance.
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