Bank of Zambia Circular 1/1997: Foreign Exchange Open Position Limits

The Bank of Zambia requires all commercial banks to recalculate foreign exchange open position limits using the end-of-month regulatory capital position instead of the last audited accounts. Effective 31 January 1997, these quarterly currency exposure limits will be fixed based on the updated capital figures to ensure real-time compliance with the 1996 Foreign Exchange Risk Management Regulations. This adjustment replaces the previous reporting practice to align regulatory capital assessments with current financial positions.

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BANK OF ZAMBIA P.O. Box 30080 Lusaka 10101

7 January 1997

C B Circular No. 1/97

TO : All Commercial Banks

Dear Sirs

FOREIGN EXCHANGE OPEN POSITION LIMITS

Kindly refer to the Banking and Financial Services (Foreign Exchange Risk Management and Exposure) Regulations, 1996 which stipulate single and overall currency exposure limits as a percentage of capital. With effect from 31 January 1997, the limits will be fixed on a quarterly basis on the regulatory capital position computed as of the end of the month and not the last audited accounts as is currently the practice.

Yours faithfully

S MUSOKOTWANE (Dr) ACTING DEPUTY GOVERNOR

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Lineage: In force

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Bank of Zambia Circular 1/1997: Foreign Exchange Open Position Limits

Lineage: In force

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