Regulatory Alerts1996-01-01
Bank of Jamaica Standards of Sound Business Practices: Foreign Exchange Risk Management
The Bank of Jamaica issued this 1996 document to establish minimum policies and procedures for financial institutions to prudently manage and control their exposure to foreign exchange risk. It requires institutions to implement comprehensive risk management programs that include defining risk objectives, setting explicit exposure limits, and delegating trading authorities within a structured framework. The guidelines further mandate robust control procedures, such as accurate measurement systems, segregation of duties, independent audits, and clear accountability for both the Board of Directors and management.
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