Regulatory Alerts2012-04-02 | BPS/DIR/CIR/GEN/02/06Guidelines on Cheque Truncation in Nigeria
As of April 2, 2012, Authorised Dealers are informed that the restriction on using WDAS funds to negotiate Unconfirmed Letters of Credit (ULC) has been revised. Now, such funds can only be used for ULCs established for importation of Raw Materials, Plant and Machinery. Any breach will be sanctioned appropriately, including suspension from the foreign exchange market. This circular supersedes TED/FEM/FPC/GEN/01/036 dated November 24, 2010.
09 46237802 TRADE & EXCHANGE DEPARTMENT Tel: Fax: E-mail address:ted@cenbank.org TED/FEM/FPC/GEN/01/009 April 2, 2012 TO: ALL AUTHORISED DEALERS AND THE GENERAL PUBLIC RE: LIBERALIZATION OF UNCONFIRMED LETTERS OF CREDIT Authorised Dealers are hereby informed that from the date of this circular, the restriction on the use of WDAS to negotiate Unconfirmed Letters of Credit (ULC) has been reviewed.
Consequently, WDAS funds can be used to negotiate ULC established for the importation of Raw Materials, Plant and Machinery only. For the avoidance of doubt, funds for the negotiation of ULC established for importation of general merchandise shall be from the Interbank market.
This circular supersedes the one with reference: TED/FEM/FPC/GEN/01/036 of November 24, 2010, Please note and ensure compliance as any breach will be sanctioned appropriately, including suspension from the foreign exchange market.
DE & EXCHANGE DEPARTMENT