National Bank of Rwanda - Regulation No. 07/2011 - On Foreign Exchange Exposure Limits


The Bank of Rwanda's Regulation No. 07/2011 promotes a stable and effecient banking and financial system by establishing a risk management framework that offers a standard approach for computing capital requirement for credit risk, a standardized measuring method for market risk, and a revised standardized approach for operational risk and capital buffers for macro prudential aspect. The regulation is divided into several chapters, and covers the following topics:

1. Limit on Foreign Exchange Open Position
2. Prohibited to Make any Transactions with a Bank’s Related Parties
3. Limit on Single Currency Foreign Exchange Risk Exposure
4. Limit on Intra-Day Foreign Exchange Risk Exposure
5. Methodology of Calculation
6. Correction of Excess Foreign Risk Exposure
7. Maintenance of Supporting Documentation
8. Calculation of Exposure on Net Open Position in a Single Currency
9. Calculations of Overall Foreign Exchange Risk Exposure
10. Reporting Requirements
11. Remedial Measures and Administrative Sanctions

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Monday, April 11, 2011
Document Authors: 
National Bank of Rwanda
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