New Measures To Protect Investors From Volatility Of Prices Of Hard Currency

date 2017/07/31 views 430 comments 0

icon-writer Sofiane. A. /*/ English Version: Med.B.

The Monetary and Loan Board in Algeria has of late approved a draft regulation on the interbank market for exchange and risk insurance instruments.

According to the Bank of Algeria, the adoption of this system by the Monetary and Loan Board during its ordinary session held on 10th July was devoted to the floating currency, as the latter represents, through the fluctuation of exchange rates, to the economic traders and investors a monetary exchange risk as part of the implementation of international transactions that would cause them large losses in hard currency exchange.

This new system gives traders and investors the opportunity to "avoid these risks by allowing authorized brokers to use a variety of currency risk exposure, allowing them, on their own account or on behalf of their clients, to take risks against the Dinar."

According to APS, this type of banking activities will focus on the interbank market "by providing it with the ethics of the profession and a very good biography," adds the Bank of Algeria. 

This organization is also part of a logical continuation of the Bank of Algeria's approach which stressed that the new organization "represents an important milestone in improving the national business climate".

The new regulation will allow traders and investors to "better and more clearly" control the costs and risks associated with international transactions throughout their implementation process. 

Due to their efficiency and high technology, the provisions of this regulation on interbank exchange and exchange risk hedging instruments will be gradually monitored via regular business meetings with commercial banks throughout the period of publication of the instructions for their smooth implementation, according to the Bank of Algeria.

  • print