New Details On Exchange Offices, The Digital Dinar, And Investment Banks

Sources from the financial and banking sector reported that the regulatory texts for the new Monetary and Banking Law are being prepared and half of them are ready and currently on the table of the General Secretariat of the Government, as they will be issued during the current summer at the latest, so that banks and financial institutions will officially start implementing what is stated in the new legal text.
The new monetary and banking law, which was published in the official gazette on June 27, is the subject of 13 regulatory texts that determine the manner in which banknotes and coins are issued, their identification signs, their face value and sizes, the methods of production and destruction of banknotes and coins, the conditions for the development of digital currency, and the rules for the management and control of the digital currency of the Central Bank, which it bears the name “Algerian digital dinar”.
The new regulatory texts also specify, according to the same source: “The salary of the governor of the Bank of Algeria and his three deputies, the method of appointing financial controllers at the level of the supervisory authority, who are delegated from their original management, as well as how to pay their salaries, and the new texts specify how to apply the decisions of the Banking Committee regarding the penalties imposed.” against a bank, financial institution, independent intermediary, exchange bureau or payment service provider that has not complied with the licensing rules.”
It is also assumed that a new regulatory text will be issued that defines how the Monetary and Banking Council implements its monetary policy, “such as determining how the Monetary Council intervenes at the level of the money market, through the final purchase or sale of securities, lending or borrowing negotiable dues and bonds issued in dinars, and carrying out loan operations” certified by appropriate guarantees,” the source added.
The regulatory text also defines the conditions and modalities for resorting to emergency liquidity according to a system issued by the Monetary and Banking Council, as well as the tariff paid by participants in electronic payment systems, and the legally authorized payment service providers, according to the new text, provide payment services that banks perform, while specifying a list of services Payment, as well as the conditions and modalities for the approval of payment service providers according to a regulation issued by the Council.
Another regulatory text defines the conditions and modalities for carrying out activities and operations by investment banks and digital banks, the modalities for concluding agreements with monetary authorities or foreign central banks, and defines the assets of each new banking institution, as its assets may not exceed its liabilities, as well as the modalities for the activity of independent brokers and exchange offices. And payment service providers, and methods of transferring capital abroad to ensure the financing of the activities of investors abroad, which must be complementary to their activities for the production of goods and services in Algeria.
It is known that the current application texts will remain in force until the new application texts are issued, as the source assures that the latter will be ready and may enter into force next September at the latest, i.e. before the end of the current summer season.