Regulatory Alerts2022-01-01
Palestine Monetary Authority Instructions No. 5 of 2022 on Mandatory Cash Reserves
The Palestine Monetary Authority issued Instructions No. 5 of 2022 to establish mandatory cash reserve requirements for licensed banks in Palestine, excluding digital and microfinance banks. The directive defines the reserve base, mandates a 9% ratio on circulating currency deposits and 100% on dormant balances, and allocates 20% of the reserve to a settlement account governed by RTGS rules. Banks must submit calculated reserve statements by the 5th of the following month, cover balances by the 10th, and face daily fines for shortfalls, with the instructions taking effect for the October 2022 reserve period.
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