Regulatory Alerts2022-05-01
Adjustment to the Cash Reserve Requirement and Net Open Position in Foreign Currencies
The Bank of Uganda has raised the cash reserve requirement for commercial banks by two percentage points, increasing it from eight percent to ten percent. The circular simultaneously caps the net open position in foreign currencies at ±10% of core capital, consistent with Section 42, 1b of the Financial Institutions Act. These changes become effective on June 23, 2022, and require all commercial banks to implement the new thresholds immediately.
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