Palestine Monetary Authority

Palestine Monetary Authority

Instructions No. (4/2013)

To all banks operating in Palestine
Date: Wednesday, March 13, 2013

Subject: Liquidity Instructions

Based on the provisions of Banking Law No. (9) of 2010, and pursuant to Instructions No. (5/2008) dated 29/12/2008, Paragraph (2/c) stipulating the following is amended:

The minimum cash liquidity ratio:

1. For the Bank: 3% per currency and 6% total currencies.
2. For the Branch: 2% per currency and 4% total currencies.

To read as follows:

1. The minimum cash liquidity ratio:

Level	Currency	Total Currencies including US Dollar
Bank	For each currency other than US Dollar	3%
Branch	For each currency other than US Dollar	4%

2. The minimum cash liquidity ratio in US Dollars is amended as follows:

Date	At Bank Level	At Branch Level
Effective from 2013/05/01	Increased from 3% to 4.5%	Increased from 2% to 3%
Effective from 2013/11/01	Increased from 4.5% to 6%	Increased from 3% to 4%

This amendment takes effect from 2013/05/01, and all banks are required to take necessary measures to ensure compliance with these instructions according to the specified dates above.

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Supervision and Audit Department
Palestine Monetary Authority

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Ramallah - Al Bireh P.O.Box 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box 4026 - Tel.: 08-2825713 - Fax: 08-2844487 E-mail: info@pma.ps www.pma.ps

Ramallah - Al Bireh - P.O. Box: 452 - Tel.: 02-2409920 - Fax: 02-2409922 Gaza - P.O. Box: 4026 - Tel.: 08-2825713 - Fax: 08-2844487