Regulatory Alerts2020-04-22 | 123458Instruction on the Procedure for Compliance with Open Currency Position Limits by Credit Unions
The National Bank of the Kyrgyz Republic issued this instruction to regulate currency risk management by credit unions, including those operating under Islamic banking principles. It mandates strict daily limits on open currency positions, requiring long/short positions in central bank-set currencies to remain within 15% of capital and aggregate positions within 20%, with immediate corrective actions required for any breaches. Non-compliance triggers financial penalties up to 10% of assets and potential license revocation for systematic violations or attempts to misreport positions.
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