Circular dated November 28, 2017 regarding amending the limits of banks’ currency positions

Cairo: November 28, 2017

Dear Chairman of the Board of Directors Bank

Greetings,

With reference to the circular letter issued on September 16, 1993, regarding the rules governing balance limits in currency positions at banks, and to its subsequent circular letters, the last of which were the instructions issued on December 29, 2012, which reduced the limits that the surplus in currency positions must not exceed due to considerations required by that period. In this regard, please be informed that it has been decided to revert to the limits applied before the instructions issued on December 29, 2012, as follows:

1. Regarding the value of the surplus or deficit in foreign currency positions at any bank operating in Egypt, including branches of foreign banks:

   • The value of the surplus or deficit in any foreign currency position must not exceed 10% of the capital base.
   • The value of the total surplus or deficit in currency positions (foreign or local) must not exceed 20% of the capital base.

2. The surplus or deficit in the local currency position is subject to the mentioned limit at 10% of the capital base.

3. Banks must adhere to the prescribed limits starting from December 1, 2017, at the end of each business day, and the surplus or deficit ratios in any currency position and the total surplus or deficit in currency positions must not exceed twice the mentioned limits during the day.

4. The remaining provisions of the relevant instructions apply to what is not mentioned above.

Please be so kind as to alert regarding taking the necessary action in this regard.

Respectfully, Gamal Naguib