Regulatory Alerts2024-02-29 | NRP-58Technical Standards on the Relationship Between Foreign Currency Active and Passive Operations of Financial Entities
The Technical Standards Committee of the Central Reserve Bank of El Salvador issued these norms to limit the absolute difference between foreign currency active and passive operations to a maximum of 10% of an entity's equity. The regulations apply to various financial institutions, including banks, investment banks, and credit societies, requiring them to calculate this difference monthly based on end-of-month balances. Entities must submit detailed reports of these calculations within the first five or ten business days of the following month, depending on the specific period, to ensure prudent management of exchange rate risks.
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