Regulatory Alerts2014-02-20
Regulation (NAP) - Foreign Currency Cash Operations
The Central Bank of São Tomé and Príncipe issued this Permanent Application Regulation to establish a dedicated euro-denominated cash account that enables commercial banks to manage liquidity, meet minimum reserve requirements, and streamline national payments. The regulation mandates that foreign currency cash deposits undergo authenticity verification within three days, remain non-transferable, and incur no fees, while requiring one business day's prior notice for counter withdrawals. It simultaneously revokes previous cash management directives (NAP 18/2006 and NAP 13/2009) and takes immediate effect.
| Central Bank of S.T.P | P A P PERMANENT APPLICATION REGULATION (NAP) | CODE RD 09 |
|---|---|---|
| PROPOSER(S) | EFFECTIVE DATE | ISSUANCE DATE |
| C.A | 01/04/14 | 20/02/14 |
Subject: Foreign Currency Cash Operations
Whereas it is necessary to establish a mechanism that facilitates commercial banks' liquidity management and compliance with minimum cash reserves, as well as to revitalize the national payment system;
Therefore, in the exercise of the powers attributed to it by paragraph 1 of Article 31 of its Organic Law No. 8/92, the Central Bank hereby determines the following:
Article 1. (Cash Deposits)
- Commercial banks are permitted to make cash deposits and withdrawals exclusively in EUROS into a special account designated solely for covering minimum cash reserves;
- Deposits made must be itemized by denomination, stating the total value thereof.
Article 2. (Certification)
- Foreign currency cash deposited at the Central Bank is subject to authenticity verification.
- Depending on the amount and transaction volume, the certification period for banknotes received by the Central Bank may last up to 3 days.
| Reviewed By | Revocation Data: |
|---|
| Central Bank of S.T.P | P A P PERMANENT APPLICATION REGULATION (NAP) | CODE RD 09 |
|---|---|---|
| PROPOSER(S) | EFFECTIVE DATE | ISSUANCE DATE |
| C.A | 01/04/14 | 20/02/14 |
Article 3. (Restrictions)
Deposits made by banks in cash are not subject to any type of transfers.
Article 4. (Fees)
No commissions are charged on deposit and withdrawal operations in the special account established in Article 1;
Article 5. (Prior Notice)
Cash withdrawals of funds at the Central Bank counters must be communicated with a prior notice of 1 business day;
Article 6. (Revocation)
Permanent Application Regulations (NAP) No. 18/2006 of 07/12/2006, NAP No. 13/2009 of 29/12/2009, and all provisions contrary to the spirit of this NAP are hereby revoked.
Article 7. (Entry into Force)
This regulation enters into force immediately.
Central Bank of São Tomé and Príncipe, on February 20, 2014
| Reviewed By | Revocation Data: |
|---|