BDL Issues Circular 677 that Suspends Previous Circular 675 on FX Operations and Circular 676 on Consolidated Financial Accounts at Banks

BDL issued on 11 September 2023, through its Acting Governor Dr Wassim Mansouri, Intermediate Circular 677 by which it suspended the application of some articles in Intermediate Circulars 675 and 676. More specifically, Intermediate Circular 677 suspended:

– Article 3 of Intermediate Circular 675 that deals with the regulatory actions that banks will be subjected to in case they don’t meet the required net FX position.

– Article 4 of Intermediate Circular 675 that deals with the maximum period allowed for banks to settle their violation of the required net FX position.

– Article 1 of Intermediate Circular 676 that deals with how banks should report the changes in their net FX position in their consolidated financial statements.

Interesting to note that, the suspension of the above articles by BDL came after banks complained about the validity of these articles and their inability to apply them by the specified time period, especially given the difficult FX position for many banks arising from the ongoing financial crisis.

Leave a Reply

Your email address will not be published. Required fields are marked *