Regulatory Alerts2020-04-22 | 123454Instruction on the Procedure for Compliance with Open Currency Position Limits by Microfinance Companies
The National Bank of the Kyrgyz Republic issued this Instruction to establish regulatory limits and reporting procedures for open currency positions held by microfinance companies (MFCs) to mitigate currency risk. The document mandates that MFCs calculate net and aggregate currency positions daily, adhering to strict caps of 15% of own capital per currency and 20% in aggregate, while requiring immediate correction of any breaches. It further outlines enforcement measures, including financial penalties for violations, and specifies internal control and Sharia-compliant operational requirements for MFCs.
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