Regulatory Alerts2011-08-21
Requirement for Daily Holding of Foreign Currency and Limit on Daily Withdrawal
The Central Bank of Seychelles mandates daily physical holdings of US dollars, euros, and British pounds for all commercial banks, establishing higher thresholds for larger institutions and lower ones for smaller ones. It sets a minimum daily withdrawal and purchase limit of SCR50,000 per customer without prior notice, permitting banks to require three working days' advance warning for larger transactions while retaining discretionary approval. The circular grants a three-day grace period to restore holding levels after withdrawals and prohibits refusing foreign currency transactions unless clients consistently exceed limits over a week, requiring clear client communication of these policies.
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