Subject: Instructions on implementation of Regulation of Oman Regulation No. BM/REG/019/3/1980 Maintenance of Foreign Exchange Positions by Licensed Banks

With reference to Article 2-1.09(l) and (n) of the Banking Law, AND WHEREAS Oman Regulation No. BM/REG/019/3/1980 was published in the Official Gazette No. 191 on 1st April 1980, AND WEHREAS Central Bank Circular BM 286 was issued explaining in detail the implementation of Regulation of Oman Regulation No. BM/REG/019/3/1980, AND WHEREAS Article 3 of the said Oman Regulation No. BM/REG/019/3/1980 authorizes the President of the Central Bank to issue instructions for the implementation of this Regulation.

It has now been decided as follows:

1. Licensed Banks are not allowed to take positions in Foreign Exchange except within the limits specified hereunder.

2. The limit is hereby specified to be not more than 40% of the bank’s capital and reserves within the Sultanate. Provisions shall not be included in such calculations.

3. This limit shall apply to all foreign currencies without exception. Positions in each currency shall apply to both spot and forward operations.