Qatar sets new regulations for bank foreign currency holdings

Qatar's central bank issues new maximum limits on open positions that banks can hold in foreign currency
Qatar sets new regulations for bank foreign currency holdings
Qatar money, Qatar currency, Qatar finance, Qatar banking, Qatar finance
By Reuters
Tue 12 Apr 2016 07:38 PM

Qatar's central bank has issued new maximum limits on open positions that banks can hold in foreign currency, according to a circular seen by Reuters that was sent to banks last week.

The circular set the maximum limit for dollar open positions - surplus and deficit - at 25 per cent of capital and reserves, while the limit set for all other foreign currencies was set at 5 per cent.

The aggregate open positions for all foreign currencies combined was set at 30 per cent of bank capital and reserves, the circular said.

In its brief circular, the central bank said it was "keen to limit the risks of foreign currency open positions". It did not elaborate and central bank officials could not be reached to comment on Tuesday.

Banks have a 12-month grace period to comply to the new regulations, the circular said.

Under the previous regulations, lenders' foreign currency assets must be at least equal to their liabilities, traders said.

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