Regulatory Alerts2022-08-17 | CBE3.11Added · Updated
CBE Regulation Book 3.11 - Limits Of Equilibrium In Currency Positions
The Central Bank of Egypt amends the rules governing currency position equilibrium limits for banks operating in Egypt, including foreign branches. Banks must ensure that the surplus or deficit for any single currency does not exceed 10% of the capital base, and the total surplus or deficit across all currencies does not exceed 20% of the capital base. These limits apply from December 1, 2017, with a temporary allowance of double the limits for the first two working days. The regulation also clarifies that spot transactions and forward operations for hedging are considered normal banking activities, prohibits the creation of foreign currency reserves from year-end profits or provisions for Egyptian Pound liabilities, and mandates specific reporting formats for equilibrium positions.
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