Regulatory Alerts1994-01-01
Bank of Zambia Circular 14/1994 on Foreign Currency Exposure
The Bank of Zambia requires all commercial banks to cap their net foreign currency open position at 25 percent of total capital and reserves, effective 31 December 1994. To mitigate exchange rate risks following economic liberalization, institutions must submit monthly exposure reports on Form FMX3 by the 10th of the subsequent month while updating daily Forms FMX1 and FMX2 to separately track derivatives and broader transaction rates. Banks projecting excess exposure must secure prior approval from the Director of Bank Supervision by 20 December 1994, submitting detailed position data and a compliance remediation schedule.
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