Banks shall not hold long positions in pound, euro and other currencies, according to the revised directive of the Net Open Position (NOP).
According to the directive, the Single Currency Position limit for each currency shall range from 0% to -10% of Net Own Funds (NOF).
Daily changes in NOP, excluding contingent liabilities, shall be fully reconciled with the net foreign exchange trade for the reporting day, calculated as total FX purchases less total FX sales.
Again, all banks shall continue to submit the Daily Bank Returns (DBK). Similarly, reports for each working day shall be submitted no later than 10:00 a.m. on the following business day.
Authorised Dealer Banks shall restrict their Net Open Position (NOP) to the limits and conditions set out including the single currency position at the close of business on any day shall be either a squared (0%) or a short position not exceeding 10% of NOF for each currency.
Where a bank enters into transactions involving partial margins denominated in foreign currency, and such margins are in the same currency as the underlying Letter of Credit or contingent exposure, only the net exposure, being the difference between the face value of the Letter of Credit and the foreign currency margin, shall be included in the computation of the Net Open Position.
The Bank of Ghana concluded advising banks to ensure that reports are complete, accurate and submitted within the prescribed timelines.
“Any inaccurate, incomplete, delayed submissions and/or non-submission of reports shall attract sanctions as provided in Section 93 (3) and Section 41 (4) of Act 930 as well as any other applicable laws and regulations”.
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