DUBAI: Qatar’s central bank has issued new maximum limits on open positions that banks can hold in foreign currency, according to a circular seen by Reuters.

The circular set the maximum limit for dollar open positions — surplus and deficit — at 25 percent of capital and reserves, while the limit set for all other foreign currencies was set at 5 percent.

The aggregate open positions for all foreign currencies combined was set at 30 percent of bank capital and reserves, the circular said.

In its brief circular, the central bank said it was “keen to limit the risks of foreign currency open positions.”

Banks have a 12-month grace period to comply to the new regulations, the circular said.

Under the previous regulations, lenders’ foreign currency assets must be at least equal to their liabilities, traders said.