Regulatory Alerts2009-12-20
Regulation (NAP) - Foreign Exchange Market
The Central Bank of São Tomé and Príncipe issued this Permanent Application Regulation to enhance transparency and risk management in the national foreign exchange market. It mandates banks to calculate, report weekly, and submit their foreign exchange positions using a specified formula and standardized table. The regulation enforces strict limits on global and per-currency positions (capped at 20% and 10% of own funds, respectively) and suspends access to central bank foreign currency bidding and direct hedging for non-compliant institutions.
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