Regulatory Alerts2020-02-01
Instruction N° 080/DGCC/DCH/18 Amending Instruction 0056/DGCC/DCH/16 Establishing a Bilateral Foreign Exchange Auction Market
The Central Bank of the Republic of Guinea (BCRG) issued Instruction N° 080/DGCC/DCH/18, which amends Articles 2, 11, and 13 of its prior Instruction N°0056/DGCC/DCH/16 establishing the bilateral foreign exchange auction market. This new instruction clarifies that the BCRG, commercial banks, and authorized external intermediaries can participate in these auctions. It also introduces sanctions for non-compliance, including a suspension from 1 to 4 auction sessions, and allows the BCRG to conduct unilateral US dollar sales in exceptional cases, limiting any single participant to 40 percent of the amount sold.
Conakry, June 29, 2019
REPUBLIC OF GUINEA CENTRAL BANK
INSTRUCTION N° 0 8 0 /DGCC/DCH/18 AMENDING INSTRUCTION 0056/DGCC/DCH/16 ESTABLISHING A BILATERAL FOREIGN EXCHANGE AUCTION MARKET
THE GOVERNOR
Having regard to Law L/2017/017/AN of June 8, 2017, repealing Law L/2016/064/AN of July 9, 2016, repealing Law L/2016/064/AN of November 9, 2016, itself amending Law L/2014/016/AN of July 2, 2014, on the Statutes of the Central Bank of the Republic of Guinea;
Having regard to Law L/2000/06/AN of March 28, 2000, on the regulation of financial relations relating to transactions between the Republic of Guinea and abroad;
Having regard to Law N° 2006/010/AN of October 24, 2007, on the fight against money laundering in the Republic of Guinea;
Having regard to Decree N°L/2010/010/PRG/SGG of December 27, 2010, appointing the Governor;
Having regard to Instruction N°112/DGAEM/RCH/00 of September 11, 2000, establishing the regime for financial relations relating to transactions between the Republic of Guinea and abroad.
DECIDES
Article 1: Purpose
This instruction amends the provisions of Articles 2, 11, and 13 of Instruction N°0056/DGCC/DCH/16 of January 4, 2016, establishing the bilateral foreign exchange auction market.
Article 2: Participants in Bilateral Foreign Exchange Auctions
The BCRG, commercial banks, and all authorized external intermediaries operating in foreign exchange are authorized to participate in bilateral foreign exchange auction operations.
Article 3: Sanctions applicable in case of failure to meet obligations
Any participant who fails to honor their obligations arising from the foreign exchange auction market shall incur sanctions as defined in the regulatory texts, to which a suspension of 1 to 4 foreign exchange auction sessions will be added.
Article 4: Market Shift Clause
In exceptional cases, the BCRG may pre-announce that the auction will be a unilateral auction where the BCRG will sell US$. In these circumstances, a single participant may not obtain more than 40 percent of the amount sold.
Article 5: Final Provisions
This instruction, which repeals all prior contrary provisions, enters into force from its date of signature and shall be registered and published wherever necessary.
(Signature and seal)
Dr. Louncény NABE