Czech National Bank measure 184 / 1993 Coll.
Measures by the Czech National Bank laying down the conditions for trade in foreign exchange funds by foreign exchange banks in the internal foreign exchange market
Valid
184
MEASURES
Czech National Banks
of 8 June 1993
laying down the conditions for trade in foreign exchange funds by foreign exchange banks in the internal foreign exchange market
The Czech National Bank pursuant to § 36 (c) of Act No. 6 / 1993 Coll., on the Czech National Bank, and § 13 of Foreign Exchange Act No. 528 / 1990 Coll., as amended by Act No. 228 / 1992 Coll., provides:
Purpose of the measure
The purpose of this measure is to lay down the conditions for trade in foreign exchange assets carried out by foreign exchange banks1) in the internal foreign exchange market.
Definition of terms
(1) For the purposes of this measure, the internal foreign exchange market shall be the interbank foreign exchange market and the trade in foreign exchange funds between the clients of foreign exchange banks and foreign exchange banks.
(2) A participant in the interbank foreign exchange market is the Czech National Bank and foreign exchange banks, if they are authorised by the Czech National Bank to trade foreign exchange values and to make payments to foreign countries to the extent required for operations under this measure.
(3) The purchase and sale of foreign exchange funds within the meaning of Section 7 (1) of the Foreign Exchange Act between participants in the interbank foreign exchange market takes place on the interbank foreign exchange market.
(4
Interbank foreign exchange market
(1) Interbank foreign exchange market participants deal with each other on the fast and forward markets for agreed exchange rates.
(2) The Czech National Bank also conducts transactions with foreign exchange banks in selected freely convertible currencies within the framework of the exchange rate fixing of the Czech koruna to freely convertible currencies (foreign exchange fixing). The requirements for the purchase or sale of selected currencies against the Czech Crown can only be transmitted by interbank foreign exchange market participants by 11.00 a.m. local time to the Czech National Bank, asset management department, via REUTERS communication system or by telephone. The requirements thus transmitted are binding on the Czech National Bank and other participants in the interbank foreign exchange market, and the subsequent sale or purchase of freely convertible currencies will take place at the exchange rate midpoint established by the Czech National Bank at the foreign exchange fixing.
(3) The Czech National Bank may reject the demand or supply of foreign exchange funds from some foreign exchange banks in the event that other measures of the Czech National Bank in the foreign exchange areas.3)
(4) The operations of the Czech National Bank with value are carried out in the interbank foreign exchange market in a range according to the current official exchange rate for purchase or sale.
Foreign exchange bank business with clients
(1) Foreign exchange banks' business with clients in the purchase of foreign exchange direct debits and foreign exchange payments are carried out for agreed exchange rates of freely convertible currencies to the Czech Crown and can be negotiated as quick (value spot) and forward foreign exchange operations.
(2) The Czech National Bank may adjust or limit the use of the agreed current exchange rates.
(3) The Foreign Exchange Bank can offer the client a quick foreign exchange operation according to the exchange rate announced by the Czech National Bank on the day of the foreign exchange operation.
(4) The foreign exchange operations negotiated between the foreign exchange bank and the client pursuant to paragraph 3 will take place at the Czech krona exchange rate for the purchase or sale of foreign exchange funds with a margin of not more than + - 0,5% from the exchange rate at the centre declared by the Czech National Bank.
Official exchange rates
(1) The exchange rates announced by the Czech National Bank as foreign exchange market - foreign exchange rates are the official foreign exchange rates applicable on the following working day after their publication and until the new official foreign exchange rates become valid.
(2) The exchange rates announced by the Czech National Bank as foreign exchange market - Values are official rates valid for the following working day after their publication and until new official rates are valid.
(3) The exchange rates centre for transactions with value may be quoted differently from the official rates of value centre in the Czech Republic by the foreign exchange bank when selling or buying valuables in the Czech Republic, while the rates for the sale of valuables may not exceed the official rates of value sale and the rates for buying valuables may not be lower than the official rates of value purchase. The Czech National Bank may change the range of official courses as required.
The Czech National Bank is entitled to determine the range of selected freely convertible currencies with which it will trade within the course of daily fixation of the Czech Crown course to freely convertible currencies.
The measure of the Czechoslovak State Bank of 24 August 1992 laying down the conditions for trade in foreign exchange funds carried out by banks in the internal foreign exchange market, announced in the amount of 88 / 1992 Coll., is hereby repealed.
This measure shall take effect on the day of its publication.
Governor:
Ing. Tošovský v. r.
1) Article 3 of Act No. 528 / 1990 Coll., Foreign Exchange Act, as amended by Act No. 228 / 1992 Coll. (full version No. 457 / 1992 Coll.).
2) Section 5 of the Foreign Exchange Act.
3) For example, the measure of the State Bank of Czechoslovakia No 26 of 1 June 1992 laying down restrictions and conditions on unsecured foreign exchange positions, published in the amount of 86 / 1992 Coll.
Sign in for notes, favorites and notifications
Regulation Information
| Citation | Measure Czech National Bank No. 184 / 1993 Coll., laying down the conditions for trade in foreign exchange funds carried out by foreign exchange banks in the internal foreign exchange market |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 29.06.1993 |
|---|---|
| Effective from | - |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
Comments 0