Regulatory Alerts2017-02-15
Regulation on Foreign Exchange Coverage
The Central Bank of São Tomé and Príncipe issued this Permanent Application Norm to regulate foreign exchange coverage for authorized financial institutions and exchange houses. It establishes eligibility criteria, including limits on exchange rate positions relative to qualified equity (12% per currency and 25% globally), mandates weekly reporting of positions, and sets fixed commission rates for Euro operations (1.5% on sales, 0.5% on purchases). Furthermore, it repeals the previous 2012 regulation and outlines penalties for non-compliance, such as suspension of coverage access or supervisory sanctions.
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