Instructions No. 1 of 2024 Regarding the Exchange Rates of Major Currencies

Palestine Monetary Authority

Instructions No. (1) of 2024
Regarding the Exchange Rates of Major Currencies

Pursuant to the provisions of Legislative Decree No. (40) of 2022 regarding the licensing and supervision of the exchange business, particularly Articles (9, 10, 26) thereof, and in accordance with the powers delegated to us, and in pursuit of the public interest, we have issued the following Instructions:

Article (1)
Definitions

The words and phrases appearing in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

• Exchange Rate Margin: The difference between the selling price and the buying price issued by the exchange for each currency individually, for the purpose of executing transactions subject to the provisions of these Instructions.
• Client: A natural or legal person.

Article (2)
Objective and Scope of Application

1. The provisions of these Instructions aim to achieve the following:
   a. Regulate the buying and selling operations of major currencies circulating in the Palestinian market with clients (US Dollar, Jordanian Dinar, and Israeli Shekel) and determine their exchange rate margins. b. Prevent currency speculation practices that may harm financial, monetary stability, or the public interest.
2. The provisions of these Instructions apply to all licensed exchange companies/shops authorized by the Palestine Monetary Authority to conduct exchange business in Palestine.

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Article (3)
Buying and Selling of Currencies

1. The exchange shall comply with the following:
   a. Rely on reliable global currency screens such as Reuters or Bloomberg when determining the buying and selling prices of major currencies circulating in Palestine. b. The selling price of the currency shall not exceed the prevailing price for purchasing it on global screens by more than 200 basis points as a maximum.
   c. The exchange rate shall not create a negative impact on fair competitiveness.
2. The exchange is prohibited from executing buying or selling currency transactions for a single client with a value exceeding 20,000 US dollars or its equivalent daily, unless the exchange obtains prior approval from the Palestine Monetary Authority to exceed this limit.
3. The exchange is obligated to provide the Palestine Monetary Authority with a daily report on buying and selling currency transactions conducted at the company's branches.

Article (4)
Recording and Disclosure

The exchange shall comply with the following:

1. Recording all buying and selling currency transactions in the accounting system according to the actual exchange rate.
2. Providing counterparties with an official invoice extracted from the accounting system, stamped and indicating all transaction details including the exchange rate.
3. Publishing exchange rates in a prominent and clear location for the public.

Article (5)
Penalties

1. Any person violating the provisions of these Instructions shall be penalized in accordance with Articles (24, 25) of Legislative Decree No. (40) of 2022 regarding the licensing and supervision of the exchange business, including:
   a. Closing the premises or multiple premises of the exchange for a period determined by the Palestine Monetary Authority.

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--- b. Imposing a financial fine on the exchange.
c. Revoking the exchange license.

Article (6)
Repeal of Conflicting Provisions

All provisions conflicting with these Instructions are repealed.

Article (7)
Implementation and Enforcement

All competent authorities shall implement the provisions of these Instructions, each within its respective jurisdiction, and they shall apply from the date of their issuance. Issued in Ramallah on: 24/09/2024 AD

Dr. Firas Malhem
Governor
(Signature)

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Ramallah and Al-Bireh Governorate - Palestine | P.O. Box 452 Ramallah & Al-Bireh Governorate Postal Code: P6160675 | Tel: 970+2 2415310 | Fax: 970+2 | info@pma.ps | www.pma.ps