Memorandum Regarding Foreign Currency Transactions No. 2000/203 dated 2000/7/25

Memorandum No. (2000/203) dated 2000/7/25

The Central Bank Commission informs the banks that the Central Bank Commission has issued the following instructions regarding foreign currency sales and purchases:

(1) The instructions in Memorandum No. 97/111 dated 1997/6/30 are hereby repealed.

(2) The Central Bank sells foreign currency to banks at the spot rate on the day of the request, before the time specified by the Central Bank.

(3) Foreign currency sales transactions with banks are executed in the following order:
(a) The transaction is concluded through Reuters or the Central Bank's internal system before 12:30 PM, and the bank requests the maximum amount of foreign currency for the next business day.
(b) The Central Bank may delay the delivery of the requested foreign currency amount, in which case the bank must pay the cost of the delay, which is the excess interest on the account for the delay period, plus a margin of 3% on the deferred delivery amount. (c) If the bank requests the Central Bank to purchase foreign currency, the bank must pay the cost resulting from such cancellation.

(4) The Central Bank purchases foreign currency from banks at the spot rate on the day of the request, or at the spot rate on the day of delivery if the bank requests delivery on a later date. In such cases, the Central Bank determines the delivery date, which shall not be later than the next business day following the request date, unless that day is a holiday, in which case it is the next business day.

(5) Foreign currency purchase transactions with banks are executed in the following order:
(a) The transaction is concluded through Reuters or the Central Bank's internal system before 12:30 PM, and the bank requests the maximum amount of foreign currency for the next business day.
(b) The Central Bank may delay the delivery of the requested foreign currency amount, in which case the bank must pay the cost of the delay, which is the excess interest on the account for the delay period, plus a margin of 3% on the deferred delivery amount. (c) If the bank requests the Central Bank to purchase foreign currency, the bank must pay the cost resulting from such cancellation.

(6) The following transactions are permitted with banks:
(a) Sales and purchases of foreign currency for immediate delivery.
(b) Sales and purchases of foreign currency for deferred delivery before the Central Bank.
(c) Sales and purchases of foreign currency for immediate delivery for financial institutions.

(7) The Central Bank's foreign currency balances must not exceed the limits specified.

(8) Any transaction involving the purchase or sale of foreign currency is prohibited.

(9) The Central Bank is prohibited from charging any fees or commissions for any sales or purchase transactions.

(10) The Central Bank is authorized to publish daily foreign currency exchange rates, including buying and selling rates for immediate and deferred delivery, as well as the buying and selling rates for the head of the Foreign Exchange Department, and the buying and selling rates for financial institutions for immediate delivery.

(11) These instructions are considered effective as of 2000/7/26 and are deemed repealed.

Dates for Foreign Currency Purchases by the Central Bank from Banks

Request Date	Requested Amount	Delivery Date	Bank	Purchase Request Date	Purchase Amount	Delivery Date	Bank
Monday	Tuesday	Wednesday	Thursday	Friday	Saturday	Sunday	Monday

If the delivery date falls on a holiday, the delivery date is the next business day.