Regulatory Alerts2004-01-16
COBAC Regulation R-2003/02 on the Monitoring of Foreign Exchange Positions
The Central African Banking Commission (COBAC) mandates credit institutions to establish permanent measurement, risk monitoring, and control systems for tracking foreign exchange positions. Institutions must maintain long/short position ratios capped at 15% per currency and 45% across all currencies, applying specific weighting factors to Zone Franc, Euro, and other foreign currency positions. Non-compliance with these exposure limits or internal control mechanisms triggers corrective injunctions and disciplinary sanctions, with full implementation required by January 1, 2004.
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