Revising Foreign Currency Open Position

Description

The authority of the Bank of Albania in establishing rules for foreign currency open position is defined by Law no. 8269 dated 23.12.1997 “On the Bank of Albania” chapter VII, article 26 and Law no. 8365 dated 02.07.1998 “On banks in the Republic of Albania”, article 27. On the basis of these laws, a regulation on Foreign Exchange Open Positions no. 59 has been issued on 05.05.1999. In their activity to satisfy their customers’ demands through extending loans, accepting deposits in foreign currency etc, banks undertake the risks of foreign exchange fluctuations.

By amending the FX Open Positions regulation banks will benefit from having a real dimension of their exposure to FX risks and to control foreign currency risk and promoting  banking system stability by a better coverage of risks with regulatory capital.

Updated on: December 3,2009

Current Status

Output

• International Experience of Foreign Exchange Open Positions
  
• Draft Scoping of the Problem Document
  

Terms of Reference

• ToR

Project Working Group Meeting Agenda, Documents and Minutes