Regulatory Alerts2010-04-22
Central Bank of Kuwait Instructions on Islamic Banks Foreign Exchange Transactions
The Central Bank of Kuwait issued regulatory instructions permitting Islamic and local banks to conduct foreign exchange transactions in Kuwaiti Dinars against foreign currencies on a two-day value basis. These directives establish trading limits, mandate daily reporting of foreign currency surpluses or deficits, and cancel restrictive 1990s controls to allow activities like swaps, forwards, options, and interest rate futures. Banks must operate within approved risk management frameworks, submit board-authorized policies to the regulator for review, and maintain compliance with designated foreign currency trading thresholds.
Share