Regulatory Alerts2004-12-02
Instructions Concerning Buying and Selling GCC Currency Notes
The Central Bank of Kuwait issued binding instructions requiring local banks and exchange companies to buy and sell Bahraini Dinar, Omani Riyal, Emirati Dirham, and Qatari Riyal notes at daily published rates. These institutions must adhere to the Central Bank's published minimum purchase and maximum selling rates, maintaining a spread not exceeding 0.5 percent against the Kuwaiti Dinar while accepting public transactions accordingly. The Central Bank further guarantees the repurchase of unsold currency balances at the daily rate plus a 0.25 percent margin, with implementation dates spanning from August 1993 to May 1994.
19 – INSTRUCTIONS CONCERNING BUYING AND SELLING GCC CURRENCY NOTES A- Instructions (No.BSB/101/1993),concerning the Bahraini Dinar, effective 1/8/1993 . B- Instructions (No. BSB/102/1993),concerning the Omani Riyal, effective 21/9/1993 . C- Instructions (No. BSB/103/1993),concerning the Emirati Dirham, effective 6/10/1993 . D- Instructions (No. BSB/106/1994),concerning the Qatari Riyal, effective 1/5/1994 .
CHAPTER TWO: The Law, Supervisory & Regulatory Instructions & Controls 19- INSTRUCTIONS CONCERNING BUYING AND SELLING GCC CURRENCY NOTES A- Instructions (No.BSB/101/1993), concerning the Bahraini Dinar, effective 1/8/1993 1 Instructions (No. BSB/101/93) concerning the arrangements for buying and selling GCC currency notes* Introduction Reference is made to the existing arrangements concerning the exchange of GCC countries’ currency notes and the agreement amongst the GCC countries’ monetary institutions to include the Kuwaiti Dinar to such arrangements, according to which banks and exchange companies and establishments operating in GCC countries are committed to accept and exchange all GCC currency notes (buying and selling), with a margin not exceeding 0.5% of the daily published exchange rates of such currencies. The Central Bank of Kuwait has initiated arrangements with the GCC countries to implement what has been agreed upon. In this course of action, an agreement has been concluded with Bahrain to implement those arrangements effective 1/8/1993. Accordingly, it has been decided as follows: First: The Central Bank of Kuwait shall, on a daily basis, advise your bank/company of the purchase rate of the Bahraini Dinar against the Kuwaiti Dinar, as well as of the selling rate of the Bahraini Dinar against the Kuwaiti Dinar. The margin between the buying and selling rates shall be 1%, so that the purchase price will represent the minimum rate for dealing with the public, while the selling rate will represent the maximum dealing rate. Second: Your bank is required to accept the purchase of Bahraini Dinar from the public according to the Bahraini Dinar’s purchase rate against the Kuwaiti Dinar, as daily published by Central Bank of Kuwait (as a minimum). Third: In the event your bank sells the Bahraini Dinar to the public, the selling rate published by Central Bank of Kuwait (as a maximum) should be adhered to.
- Circulated to all local banks.
CHAPTER TWO: The Law, Supervisory & Regulatory Instructions & Controls 19- INSTRUCTIONS CONCERNING BUYING AND SELLING GCC CURRENCY NOTES A- Instructions (No.BSB/101/1993), concerning the Bahraini Dinar, effective 1/8/1993 2 Fourth: The Central Bank of Kuwait is committed to purchase the balances of the Bahraini Dinar existing with your bank and which have not been re-sold, at the purchase rate published by Central Bank of Kuwait on the date of its actual purchase, plus a margin of %0.25 Fifth: These instructions shall apply effective 1/8/1993. Issued on 27/7/1993.
CHAPTER TWO: The Law, Supervisory & Regulatory Instructions & Controls 19- INSTRUCTIONS CONCERNING BUYING AND SELLING GCC CURRENCY NOTES B- Instructions (No.BSB/102/1993) concerning the Omani Riyal, effective 21/9/1993 3 Instructions (No. BSB/102/93) concerning the arrangements for buying and selling GCC currency notes* Introduction Reference is made to the existing arrangements concerning the exchange of GCC countries’ currency notes and the agreement amongst the GCC countries’ monetary institutions to include the Kuwaiti Dinar into such arrangements, according to which banks and exchange companies and establishments operating in GCC countries are committed to accept and exchange all currencies of GCC countries (buying and selling), with a margin not exceeding 0.5% of the daily published exchange rates of such currencies. Further to our instructions (No. BSB/101/93) concerning the arrangements for buying and selling the currency notes of GCC countries, the Central Bank of Kuwait has initiated arrangements with the Sultanate of Oman to implement what has been agreed upon, effective 21/9/1993. Accordingly, it has been decided as follows: First: The Central Bank of Kuwait shall, on daily basis, advise your bank/company of the purchase rate of the Omani Riyal against the Kuwaiti Dinar, as well as of selling rate of the Omani Riyal against the Kuwaiti Dinar, so that the purchase rate will represent the minimum rate for dealing with the public, while the selling rate will represent the maximum dealing rate. Second: Your bank is required to accept the purchase of Omani Riyal from the public according to the Omani Riyal’s purchase rate against the Kuwaiti Dinar, as daily published by Central Bank of Kuwait (as a minimum). Third: In the event your bank sells Omani Riyal to the public, the selling rate published by Central Bank of Kuwait (as a maximum) should be adhered to.
- Circulated to all local banks .
CHAPTER TWO: The Law, Supervisory & Regulatory Instructions & Controls 19- INSTRUCTIONS CONCERNING BUYING AND SELLING GCC CURRENCY NOTES B- Instructions (No.BSB/102/1993) concerning the Omani Riyal, effective 21/9/1993 4 Fourth: The Central Bank of Kuwait is committed to purchase the balances of Omani Riyal existing with your bank and which have not been re-sold, at the purchase rate published by the Central Bank of Kuwait on the date of its actual purchase, plus a margin of %0.25 Fifth: These instructions apply effective 21/9/1993. Issued on 19/9/1993.
CHAPTER TWO: The Law, Supervisory & Regulatory Instructions & Controls 19- INSTRUCTIONS CONCERNING BUYING & SELLING GCC CURRENCY NOTES C- Instructions (No.BSB/103/1993), concerning the Emirati Dirham, effective 6/10/1993 5 Instructions (No. BSB/103/93) concerning the arrangements for buying and selling GCC currency notes* Introduction Reference is made to the existing arrangements concerning the exchange of GCC countries’ currency notes and the agreement amongst the GCC countries’ monetary institutions to include the Kuwaiti Dinar into such arrangements, according to which banks and exchange companies and establishments operating in GCC countries are committed to accept and exchange all GCC currency notes (buying and selling), with a margin not exceeding 0.5% of the daily published exchange rates of such currencies. Further to our previous instructions concerning the arrangements of buying and selling of the currency notes of GCC countries, the Central Bank of Kuwait has commenced with making arrangements with United Arab Emirates to implement what has been agreed upon concerning the acceptance and exchange of the Kuwaiti Dinar in United Arab Emirates (both buying and selling) effective 26/9/1993. Accordingly, it has been decided as follows: First: The Central Bank of Kuwait shall, on daily basis, advise your bank/company of the purchase rate of the United Arab Emirates Dirham against the Kuwaiti Dinar, as well as of the selling rate of the United Arab Emirates Dirham against the Kuwaiti Dinar, so that the purchase rate will represent the minimum rate for dealing with the public, while the selling rate will represent the maximum dealing rate. Second: Your bank / company is required to accept the purchase of United Arab Emirates Dirham from the public according to the United Arab Emirates Dirham’s purchase rate against the Kuwaiti Dinar, as daily published by Central Bank of Kuwait (as a minimum). Third: In the event your bank / company sells United Arab Emirates Dirham to the public, the selling rate published by the Central Bank of Kuwait (as a maximum) should be adhered to.
- Circulated to all local banks.
CHAPTER TWO: The Law, Supervisory & Regulatory Instructions & Controls 19- INSTRUCTIONS CONCERNING BUYING & SELLING GCC CURRENCY NOTES C- Instructions (No.BSB/103/1993), concerning the Emirati Dirham, effective 6/10/1993 6 Fourth: The Central Bank of Kuwait is committed to purchase the balances of the United Arab Emirates Dirham existing with your bank and which have not been re-sold, at the purchase rate published by Central Bank of Kuwait on the date of its actual purchase, plus a margin of %0.25 . Fifth: These instructions shall be in force from 6/10/1993. Issued on 5/10/1993.
CHAPTER TWO: The Law, Supervisory & Regulatory Instructions & Controls 19- INSTRUCTIONS CONCERNING BUYING AND SELLING GCC CURRENCY NOTES D- Instructions (No.BSB/106/1994), concerning the Qatari Riyal, effective 1/5/1994 7 Instructions (No. BSB/106/94) concerning the arrangements for buying and selling GCC currency notes* Introduction Reference is made to the existing arrangements concerning the exchange of GCC countries' currency notes and the agreement amongst the GCC countries' monetary institutions to include the Kuwaiti Dinar to such arrangements, according to which banks and exchange companies and establishments operating in GCC countries are committed to accept and exchange all GCC currency notes (buying and selling), with a margin not exceeding 0.5% of the daily published exchange rates of such currencies. Further to our previous instructions concerning the arrangements for buying and selling GCC currency notes, the Central Bank of Kuwait has commenced with making arrangements with the State of Qatar to implement what has been agreed upon, concerning the acceptance and exchange of the Kuwaiti Dinar (buying and selling) in the State of Qatar effective 1/5/1994. Accordingly, it has been decided as follows: First: The Central Bank of Kuwait shall, on daily basis, advise your bank/company of the purchase rate of the Qatari Riyal against the Kuwaiti Dinar, as well as of selling rate of the Qatari Riyal against the Kuwaiti Dinar, so that the purchase rate will represent the minimum rate for dealing with the public, while the selling rate will represent the maximum dealing rate. Second: Your bank is required to accept the purchase of Qatari Riyal from the public according to the Qatari Riyal's purchase rate against the Kuwaiti Dinar, as daily published by Central Bank of Kuwait (as a minimum). Third: In the event your bank sells the Qatari Riyal to the public, the selling rate published by Central Bank of Kuwait (as a maximum) should be adhered to.
- Circulated to all local banks.
CHAPTER TWO: The Law, Supervisory & Regulatory Instructions & Controls 19- INSTRUCTIONS CONCERNING BUYING AND SELLING GCC CURRENCY NOTES D- Instructions (No.BSB/106/1994), concerning the Qatari Riyal, effective 1/5/1994 8 Fourth: The Central Bank of Kuwait is committed to purchase the balances of the Qatari Riyal existing with your bank and which have not been resold, at the purchase rate published by Central Bank of Kuwait on the date of its actual purchase, plus a margin of %0.25 Fifth: These instructions are applicable effective 1/5/1994. Issued on 12/4/1994.