Palestine Monetary Authority

PALESTINE MONETARY AUTHORITY

Instructions No. (15) of 2024

Regarding Main Currency Exchange Rates

Based on the provisions of Law Decree No. (9) of 2010 concerning Banks, specifically Articles (40 and 72) thereof, In accordance with the powers vested in us, And to achieve the public interest, We have issued the following Instructions:

Article (1)

Definitions

The words and phrases appearing in these Instructions shall have the meanings assigned to them below, unless the context indicates otherwise:

• Point of Sale (POS): An electronic device for accepting payment transactions, provided by the POS service provider.
• E-commerce: The sale or purchase of a product or service and the execution of related financial transfers via the Internet using an electronic means.
• Exchange Rate Margin: The difference between the selling price and the buying price issued by the Bank for each currency separately, for the purpose of executing transactions subject to the provisions of these Instructions.
• Customer: A natural or legal person.

Article (2)

Objective and Scope of Application

1. The provisions of these Instructions aim to achieve the following:
   a. Regulate the buying and selling of main currencies traded in the Palestinian market with currencies (US Dollar, Jordanian Dinar, and Israeli Shekel) and determine their exchange rate margins. b. Limit currency speculation practices that may harm financial or monetary stability or the public interest.
   c. Ensure that the exchange rate does not create a negative impact on fair competitiveness.

2. The provisions of these Instructions apply to all banks licensed by the Palestine Monetary Authority to conduct banking business in Palestine.

Article (3)

Buying and Selling of Currencies

1. The Bank must comply with the following:
   a. Rely on reliable global currency screens such as Reuters or Bloomberg when determining the buying and selling prices of main currencies traded in Palestine and fixing them in the Bank's system. b. The selling price of the currency shall not exceed the prevailing price for buying it on global screens plus 200 basis points as a maximum.

2. Subject to what is stated in Item (1) of this Article, the Bank issuing the payment card must comply with the following:
   a. Not charge any differences resulting from currency exchange rates on the customer's account, in case the card currency is the same as the currency of the purchases and services paid through POS or e-commerce, whether inside or outside Palestine. b. Not charge any fees or commissions on the customer's account in case the payment card is used via POS or e-commerce, whether inside or outside Palestine.
   c. Adhere to the exchange rates fixed in the banking system in case the card currency differs from the currency of the purchases and services paid through e-commerce, whether inside or outside Palestine.

Article (4)

Penalties

Anyone who violates the provisions of these Instructions shall be punished in accordance with the provisions of Law Decree No. (9) of 2010 concerning Banks.

Article (5)

Cancellation of Conflicts

All that conflicts with the provisions of these Instructions is repealed.

Article (6)

Implementation and Enforcement

All competent authorities must implement the provisions of these Instructions, each within its respective jurisdiction, and they shall apply from the date of their issuance.

Issued in Ramallah on: 2024/09/25 AD

Dr. Firas Malham
Governor

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Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 Palestine P.O. Box 452 info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251 | Postal code: P6160675 | Postal Code www.pma.ps