# Instruction N° 04/GR/2019
# Specifying the conditions and procedures for credit institutions to hold foreign exchange assets with external correspondents
# THE GOVENOR,
Mindful of the Statutes of the Bank of Central African States in force;
Mindful of Regulation No. 02/18/CEMAC/UMAC/CM of 21 December 2018 on exchange rate regulation in CEMAC;
Pursuant to articles 38 and 195 of the said Regulations,
# HEREBY GIVES THE FOLLOWING INSTRUCTIONS
Article 1 - This Instruction specifies the conditions and procedures for credit institutions to hold foreign currency assets with correspondents outside CEMAC.
Article 2 - Credit institutions are authorised to hold a liquidity buffer in banks established outside CEMAC intended solely to cover the current needs of their customers.
Article 3 - For the purposes of this Instruction, the current needs of credit institutions shall include:
customer payment orders to be executed within a maximum period of time of 03 working days, relating to the payments for imports of goods and services domiciled in their books, including the deadlines for documentary credits; customer payment orders of less than CFAF 100 million, to be executed within a maximum period of 03 working days, relating to transactions other than those relating to domiciled imports;
the balance of accounts in currencies other than the Euro and other currencies of the Franc Zone, opened in their books in favour of non-resident customers located in the CEMAC: deposits from resident customers in authorised foreign currency accounts opened in their books, with the exception of deposits in euros and other currencies of the Franc Zone: security deposits to be made within 05 days, pursuant to agreements entered into to obtain confirmation of documentary credits from foreign credit institutions; sums in foreign currency deposited as security for documentary credits confirmed over a period not exceeding 1 year and remaining in the bank's books, pursuant to the agreements concluded for this purpose; confirmed demand documentary credits payable within an estimated periodof 15 days for amounts not exceeding CFAF 100 million; √ debit balances generated by payment transactions made by electronic payment instruments such as instant debit cards and prepaid cards: the debit balances of funds transfer operations carried out through operators backed by the bank concerned, for amounts not exceeding CFAF 100 million; the due dates, within 5 days, of the loans of credit institutions duly declared, repatriated and transferred to the Central Bank.
Article 4 - The importation of foreign banknotes is not a common need ofcredit institutions.
Article 5 - The sum of the credit balances in accounts with correspondents outside CEMAC of credit institutions corresponds to their current needs as listed in Article 3 of this Instruction. It is at any time less than or equal to 5% of customers' sight deposits, without prejudice to the application of banking regulations.