Mutual Banks Act, 1993 (Act No. 124 of 1993)RegulationsRegulations relating to Mutual BanksChapter II : Risk-based Returns and Instructions, Directives and Interpretations relating to the completion thereof31. Currency risk |
| (1) | The contents of the relevant return is confidential and not available for inspection by the public. |
| (2) | The information to be furnished in form DI 600 shall comprise the reporting mutual bank's— |
| (a) | foreign-currency assets (except infrastructural investments) and abilities; |
| (b) | commitments to purchase or sell foreign currency; and |
| (c) | net long or short position in options and futures contracts in foreign currency and gold, |
as on the day of the return, after all book entries for that day have been effected.
| (3) | The valuation of all foreign-currency assets and liabilities included in this return shall be in accordance with generally accepted accounting practice. |
| (4) | Commitments of the reporting mutual bank to purchase or sell foreign currency under forward contracts shall not be recorded at book values, but shall be shown at their market values at the close of business on the reporting date. |
| (5) | All amounts required to be furnished in terms of subregulation (2) shall be converted to US$ and be rounded off to the nearest one thousand dollars. |
| (6) | The effective net open position, calculated in the manner prescribed in form DI 600, in any one foreign currency and in all foreign currencies taken together, shall not at the close of business on any one day exceed an amount equal to 10 per cent of the net qualifying capital and reserves of the reporting mutual bank, as shown in line item number 31 on form DI 100 as at the latest date for which the relevant statement was submitted. |
| (7) | A mutual bank shall complete the Forms DI 600 in accordance with such instructions or requirements as may be determined or directed in writing by the Authority. |
[Regulation 31(7) substituted by section 28 of Notice No. 7414 of GG54593, dated 29 April 2026 - effective 1 May 2026]
[Deleted] Form DI600 - Directives and interpretations for completion