Regulatory Alerts1995-01-01
Bank of Zambia Circular 5/1995: Foreign Exchange Open Position Limits
The Bank of Zambia issued Circular 5/1995 to mandate strict compliance with established foreign exchange open position limits for all commercial banks. Citing repeated violations, the central bank declared that any institution exceeding its designated limit will be immediately suspended from the foreign exchange market for that trading day. This enforcement directive reinforces prior July 1994 guidelines and establishes zero-tolerance daily monitoring to safeguard national currency stability.
GENERAL MANAGER
BANK OF ZAMBIA
P.O. Box 30080 Lusaka
Tel: 221908/228912
31 March 1995
C B Circular No. 5/95
To : All Commercial Banks
Dear Sirs
RE; FOREIGN EXCHANGE OPEN POSITION LIMITS
Further to C B Circular No.13/94 dated July 14, 1994, commercial banks are reminded to strictly adhere to the set foreign exchange open position limits. It has once again been noticed that some commercial banks are regularly exceeding their set limits.
This serves to remind all commercial banks that the Bank of Zambia will exclude any bank from participating in the foreign exchange market dealing on any day it is found to have exceeded its open position limit.
Yours faithfully
G B MBULO
GENERAL MANAGER
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