Regulatory Alerts2022-10-27
Circular dated October 27, 2022 regarding financial derivatives linked to exchange rates
In light of the current economic developments and the Central Bank's continuous monitoring of banks' activities, the Central Bank has decided to update the regulations regarding forward foreign exchange operations linked to the Egyptian pound and the interbank foreign exchange market. The changes include allowing banks to conduct forward FX operations with local banks for non-speculative purposes and permitting swap operations for corporate clients to cover their positions arising from specific commercial transactions. The Central Bank has also lifted the ban on non-deliverable forward FX operations for bank clients, allowing banks to conduct such operations with corporate clients only for specific purposes and with local banks for non-speculative purposes.