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  • Chapter Three: Monetary Base

    • Article (62): Monetary Base Cover

      The Central Bank shall, at all times, hold reserves of foreign assets, to cover the Monetary Base, in accordance with provisions of Article (63) of this Decretal Law. Such reserves of foreign assets shall consist of one or more than one of the following items:

      1) Gold bullion and other precious metals.

      2) Cash, deposits and other monetary and payment instruments denominated in foreign currencies, freely convertible in global financial markets, including digital currencies issued by central banks and other monetary authorities.

      3) Securities denominated in foreign currencies and issued or guaranteed by foreign governments and their related companies, entities, institutions, and agencies, or by international monetary and financial institutions, or by multinational corporations, and are tradable in global financial markets.

      This article has been amended by Decretal Federal Law No. (54) of 2023. You are viewing the latest version. To view the previous version, click the version box below.
      Version 1(effective from 31/10/2018 to 01/11/2023)

       

      The Central Bank shall, at all times, hold reserves of foreign assets, to cover the Monetary Base, in accordance with provisions of Article (63) of this decretal law. Such reserves of foreign assets shall consist of one or more than one of the following items:

      1) Gold bullion and other precious metals.

      2) Cash, deposits and other monetary and payment instruments denominated in foreign currencies, freely convertible in global financial markets.

      3) Securities denominated in foreign currencies and issued or guaranteed by foreign governments and their related companies, entities, institutions, and agencies, or by international monetary and financial institutions, or by multinational corporations, and are tradable in global financial markets.

       

    • Article (63): Foreign Reserves for the Monetary Base Cover

      1) The market value of balance of the Foreign Reserves referred to in Article (62) of this Decretal Law, shall not, at any time, be less than seventy percent (70%) of the value of the Monetary Base.

      2) The Board of Directors may reduce the Monetary Base cover ratio, referred to in item (1) of this article for a period not exceeding twelve (12) months.