Adjustment to the Cash Reserve Requirement and Net Open Position in Foreign Currencies

BANK OF UGANDA

OFFICE OF
THE EXECUTIVE DIRECTOR
SUPERVISION

37-45 KAMPALA ROAD,
P.O. BOX 7120,
KAMPALA

DIRECT LINE: 256-414-230051
GENERAL LINE: 256-414-258441
Ext 2403
FAX LINE: 256-414-258515
TELEX: 256-414-61059

CABLES: UGABANK
Email: info@bou.or.ug
Website: www.bou.or.ug

EDS.306.2

June 16, 2022

CIRCULAR TO ALL CHIEF EXECUTIVES OF COMMERCIAL BANKS

Adjustment to the Cash Reserve Requirement and Net Open Position in Foreign Currencies

This is to inform you that Bank of Uganda has made the following adjustments:

1) Revised the Cash Reserve Requirement by 2 percentage points from 8 percent to 10 percent.

2) Set the maximum limit for the Net Open position in the foreign currencies at ±10% of core capital of the financial institution, in line with Section 42, 1b of the Financial Institutions Act (FIA).

These adjustments shall take effect from 23rd June 2022 and all Commercial Banks are requested to comply.

[Signature]

Tumubweinee Twinemanzi, PhD
Executive Director Supervision

Copy: Deputy Governor
Executive Director Operations
Director Commercial Banking

Mission: To Foster Price Stability and a Sound Financial System | Vision: To be a Centre of Excellence in Upholding Macroeconomic Stability