Regulatory Alerts1994-01-01
Bank of Zambia Circular 13/1994 on Open Position Limits
The Bank of Zambia requires all commercial banks to strictly adhere to their designated open position limits for foreign exchange holdings. Effective immediately, any bank found holding foreign exchange in excess of its set limit will be disqualified from participating in foreign exchange market dealings for that day. This enforcement action responds to recent regulatory returns indicating widespread non-compliance with existing position caps.
BANK OF ZAMBIA
P.O. BOX 30080 LUSAKA
10101
TEL: 228888/228903-20
FAX 222808
GENERAL MANAGER'S OFFICE
14 July 1994
CB Circular No. 13/94
To: ALL COMMERCIAL BANKS
Dear Sirs
OPEN POSITION LIMITS
It has been observed through the information submitted to Bank of Zambia by way of returns that the set limits on open positions are not being adhered to by some commercial banks. The Bank of Zambia, will with immediate effect, disqualify any commercial bank from participating in the foreign exchange market dealings on such day as it is found to be holding foreign exchange in excess of its set open limit.
Yours faithfully
G B MBULO
GENERAL MANAGER
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