Regl January 16, 1995 Monitoring Open Echange Positions

REGULATION DATED JANUARY 16, 1995

ON THE MONITORING OF BANKS’ OR FINANCIAL INSTITUTIONS'

OPEN FOREIGN EXCHANGE POSITIONS

No: NBC 795-001 RGT

The Governor of the National Bank of Cambodia,

Having seen the constitution of Kingdom of Cambodia;

Having seen the Decree 14 KRA dated January 08, 1992 of council of Minister;

Having seen the Kret of His Majesty Samdeech Preah Norodom Sihanouk King of Cambodia dated November 11, 1993 to maintain H.E. Thor Peng Leath as Governor of NBC;

Having seen the Law on the Supervision of Financial Institutions promulgated by the Decree 89 KRA dated August 27, 1992;

Having seen the Anukret 29 ANK dated November 16, 1992on the Supervision of Commercial Banks;

Decides:

Article 1:

A licensed Bank shall maintain a system that facilitates on a continuing basis measuring, managing and monitoring for open foreign exchange positions during the trading day and at the close of business.

Article 2:

Before the 31 January 1995 each bank shall submit a detailed description of its system to the National Bank.

Article 3:

A bank shall at all times observe

a limit on the long or short position in each currency not exceeding 5 % of the bank’s net worth.
a limit on the aggregate short position (including riel when appropriate) not exceeding 15% of the bank’s net worth.

Article 4:

In application of this regulation a bank shall send each month to the National Bank a monthly declaration of its position. The method to be used for completion and transmission of such report shall be defined in a separate circular.

Article 5:

These requirements shall apply from the beginning of 1995.

Governor of NBC

Signed: Thor Peng Leath