BANREP Issues Circular to Regulate Intervention in Forex Markets
21 agosto 2020

On August 14, the Bank of the Republic issued a circular regulating its ability to intervene in the foreign exchange market. The measure introduces modifications regarding alternative means for submitting offers in contingency situations and analyzes the possibility of sending forward operations with financial compliance, or their clearing and settlement to a central counterparty risk chamber (CRCC). The regulations are already in effect. 


Regarding the presentation of offers, the circular stipulates that for those cases where the usual means cannot be used during the hours established for the operation due to a contingency situation, the entity must first notify this situation on the Ban Rep website. After registering this, the entity must submit its offers to the BanRep through the alternative means provided, within no more than ten minutes after the auction closes. Only up to three offers may be submitted using these contingency mechanisms. 


The measure also establishes that forward dollar sales contracts may be executed during 30 calendar days and that the deadline for completing these operations will be 10am on the day after the contract expires. In turn, those intervention operations executed through a CRCC will be subject to the terms enshrined in the CRCC’s operating regulations. Finally, each Tax Identification Number (NIT) must maintain a single permanent instruction active in the Payment Engine on the day that the operation is completed.