Regulatory Alerts2024-10-01
Circular No. 001/2023 on Operating Modalities of the Interbank Foreign Exchange Market (MID) Issued Under Regulation No. 002/2023
The Bank of the Republic of Burundi issued Circular No. 001/2023 to establish operating rules for the Interbank Foreign Exchange Market (MID), requiring commercial banks to conduct all foreign exchange transactions on the MID at freely negotiated rates between 9:00 a.m. and 4:00 p.m. on business days. The circular mandates that banks with net foreign exchange positions exceeding 25% of their core capital must sell or purchase the excess on the following business day, while non-bank participants may obtain MID quotations through their commercial banks. The Bank retains the authority to intervene by buying or selling foreign exchange if the indicative rate deviates more than two percent from the previous day's close, following a strictly rate-based adjudication process for all eligible participants.