Regulatory Alerts1999-02-23
Instruction No. 001/99-CSBF amending Instruction No. 001/98-CSBF of September 23, 1998 on the foreign exchange positions of credit institutions
The Banking and Financial Supervision Commission (CSBF) of Madagascar amends Article 3 of its September 1998 foreign exchange instruction to redefine the cumulative, net, long, and short positions for credit institutions, specifically detailing the calculation methodology for "EURO" system currencies using fixed parities. The revised framework mandates that declaring entities submit their foreign exchange position reports in strict accordance with the attached annex, ensuring accurate offsetting of long and short positions across all relevant currencies. These updated provisions take effect on March 1, 1999, while preserving all non-contrary existing regulatory requirements.
INSTRUCTION NO. 001/99-CSBF amending Instruction No. 001/98-CSBF of September 23, 1998 on the foreign exchange positions of credit institutions
The Banking and Financial Supervision Commission (CSBF) of the Republic of MADAGASCAR, Having regard to Law No. 95-030 of February 22, 1996 on the activity and supervision of credit institutions, Having regard to Instruction No. 001/98-CSBF of September 23, 1998 on the foreign exchange positions of credit institutions, Considering the provisions of Instruction No. 035/GV/SE of December 18, 1998 on the Interbank Foreign Exchange Market, H E R E B Y D E C I D E S
Article 1. - Article 3 of Instruction No. 001/98-CSBF of September 23, 1998 on the foreign exchange positions of credit institutions is amended as follows:
"The cumulative amount of foreign exchange positions is equal to the sum of long and short positions in the various currencies. The net foreign exchange position for "EURO" system currencies is determined by offsetting long and short positions in the various system currencies ( "IN" and "EURO" currencies), after converting into "EURO" the foreign exchange positions in each "IN" currency according to the fixed parity established for that currency. For the purposes of this Instruction, a foreign exchange position is classified as long when adjusted assets in currencies to be received exceed adjusted liabilities in currencies to be delivered; it is classified as short otherwise."
Article 2. - The declarations provided for in Article 6 of the Instruction referred to in Article 1 are made in accordance with the annex to this Instruction.
Article 3. - The provisions of Instruction No. 001/98-CSBF of September 23, 1998 not contrary hereto remain unchanged. This Instruction enters into force as of March 1, 1999.
Done at Antananarivo, on February 23, 1999.
For the Banking and Financial Supervision Commission, The President, GASTON RAVELOJAONA.
COMMISSION OF BANKING AND FINANCIAL SUPERVISION
FOREIGN EXCHANGE POSITION Month of: ______________ Day of: ______________ Declaring Entity: _________________________
CURRENCIES | ASSETS (1) | LIABILITIES (2) | PURCHASED NOT YET RECEIVED (3) | SOLD NOT YET DELIVERED (4) | TO BE RECEIVED AT MATURITY (5) | TO BE DELIVERED AT MATURITY (6) | LONG POSITION | SHORT POSITION EURO * | ATS | BEF | DEM | ESP | FIM | FRF | IEP | ITL | LUF | NLG | PTE TOTAL LONG FOREIGN EXCHANGE POSITIONS ON EURO SYSTEM CURRENCIES ....... | a = TOTAL SHORT FOREIGN EXCHANGE POSITIONS ON EURO SYSTEM CURRENCIES ...... | b = NET FOREIGN EXCHANGE POSITION (long or short) .................................................................... | = (a-b) if a>b | = (b-a) if a<b EURO **
USD | GBP | CHF | JPY | CAD | DKK | NOK | SEK | DJF | SDR | MUR | ZAR ... TOTAL FOREIGN EXCHANGE POSITIONS ALL CURRENCIES ........................................................ | A = B =
- : foreign exchange position on the "EURO" currency ** : net foreign exchange position in the currencies of the "EURO" system
AVAILABLE OWN FUNDS (FPD) = ............................ (according to the most recent declaration)
A + B _____ x 100 = ............................. % FPD Antananarivo, on ............................................. [accredited signature(s) and seal]