Regulatory Alerts2008-12-15 | BSD/DIR/CIR/GEN/VOL.02/018Reduction in the Net Open Position of Banks
The Central Bank of Nigeria has approved a reduction of banks' foreign exchange Net Open Position (NOP) from 20% to 10% of shareholders funds, effective December 15th, 2008. Authorized Dealers must strictly comply with this limit in their daily foreign exchange transactions, or face appropriate sanctions.
09 61637804 09 61637802 Central Bank of Nigeria Central Business District P.M.B. 0187 Garki, Abuja E-mail address:ted@cenbank.org TED/FEM/FPC/GEN/01/132 December 12, 2008 TO: All Authorised Dealers REDUCTION IN THE NET OPEN POSITION OF BANKS This is to inform all Authorised Dealers that after a careful review of the developments in the foreign exchange market, Management of the Central Bank of Nigeria has approved the reduction of the foreign exchange Net Open Position (NOP) of all banks from 20% to 10% of shareholders funds with effect from December 15, 2008.
For the avoidance of doubt, all Authorized Dealers are enjoined to ensure strict compliance with the advised limit in their daily foreign exchange transactions failing which appropriate sanction shall apply. H. A. SALAKO for: DIRECTOR TRADE & EXCHANGE DEPARTMENT