Regulatory Alerts2010-01-01
Financial Institutions (Foreign Exchange Business) Rules, 2010
The Central Bank of Uganda issued the Financial Institutions (Foreign Exchange Business) Rules, 2010 to regulate foreign exchange operations for all authorized financial institutions. The Rules mandate a daily foreign exchange open position limit of plus or minus 25 percent of core capital, restrict foreign currency lending to a maximum of one year and 80 percent of total FX deposits, and cap correspondent bank placements based on international credit ratings. Authorized institutions must submit daily and monthly exposure reports to the Central Bank, with non-compliance triggering civil penalties, administrative sanctions, or suspension of foreign exchange privileges.
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