Regulatory Alerts2015-09-14
02 Management of Exchange Rate Risk and Mandatory Reserves
The Bank of the Republic of Haiti issued Circular #02 to mandate that commercial and savings banks limit their structural exchange rate position to a maximum of 1% of accounting equity. Banks holding long positions exceeding this threshold must unwind them by day-end, or face forced sales to the central bank at the reference rate on the third following business day. The circular also confirms the continued validity of mandatory reserve requirements on foreign currency liabilities established by Circular #01.
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