Regulatory Alerts2025-01-01
Revised Minimum Requirements for the Management of Foreign Exchange Risk for Licensed Commercial Banks
The Reserve Bank of Fiji issued this revised policy to supersede the 2016 version and establish strict standards for licensed commercial banks managing foreign exchange and settlement risks. The document mandates comprehensive risk management frameworks, independent oversight, and precise measurement systems to identify and mitigate exposures arising from trading and structural imbalances. It enforces specific maximum limits on overnight net open positions, capping single currency exposure at 12.5% of total capital and overall exposure at 25%, while requiring strict adherence to internal controls and reporting protocols.
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