Banking Circular No 7 of 2023 - Changes to Operations in the Interbank Foreign Exchange Market

The Central Bank of Kenya has announced changes to streamline the interbank foreign exchange market, including revised limits on swap tenors, permitting electronic brokerage systems, and lowering the minimum trading amount to USD 250,000. These changes are effective immediately and aim to improve the market's efficiency. The circular communicating these updates was addressed to the chief executive officers of all commercial banks in Kenya.

Get CBK alerts — same-day email on every new publication.

KUU YA
KENYA
AUGUST 29, 2023 Haile Selassie Avenue P.O. Box 60000 - 00200 Nairobi, Kenya Telephone: 2860000, Fax: 340192 BANKING CIRCULAR NO. 7 OF 2023 TO: ALL CHIEF EXECUTIVE OFFICERS OF COMMERCIAL BANKS

Changes To Operations In The Interbank Foreign Exchange Market

In order to streamline and improve operations in the foreign exchange interbank market, the Central Bank of Kenya hereby announces the following changes:
l. Limits on tenor for swaps are reviewed as follows:
The tenor of swaps and Kenya shilling borrowing where non-resident banks are involved i.

is now limited to a tenor of not less than 6 months.

ii.

There is no limit to the tenor of swaps between residents. This includes residents within the East Africa Community.

Use of Electronic Brokerage Systems is permitted.
Minimum amount that can be traded in the interbank market has been reviewed from USD
500,000 to USD 250,000.

These changes take effect immediately.

DAVID LUUSA DIRECTOR, FINANCIAL MARKETS DEPARTMENT

Read the rest free

Lineage: In force

amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Source: Central Bank of Kenya — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works