Regulatory Alerts2025-11-26
Financial Institutions (Foreign Currency Exposure) (Amendment) Regulations 2025
The Central Bank of Seychelles has issued the Financial Institutions (Foreign Currency Exposure) (Amendment) Regulations 2025 to modernize foreign currency risk management for licensed banks. The amendment replaces the prior exposure metric with an overall net open position limit capped at thirty percent of a bank’s capital base, while updating key definitions for currency positions and off-balance sheet items. Licensed institutions must now calculate and submit their net open position reports electronically by noon the following business day, with a formal mechanism to obtain temporary exemptions from the limit when unavoidable market fluctuations occur.
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