2007-05-24 | TED-FEM-FPC-GEN-01-064-07

Re: Unutilised Balances of Letters of Credit and Interest on NOSTRO Accounts

The Central Bank of Nigeria informs Authorized Dealers that due to the introduction of the Wholesale Dutch Auction System and ongoing foreign exchange market liberalization, unutilized letters of credit balances are now purchased by dealing banks instead of returning to the CBN. Interest earned on collateralized letters of credit will also be purchased by Authorized Dealers, distributing proceeds quarterly. This circular supersedes previous circulars from March 23 and May 25, 2000.

Nigeria

Central Bank of Nigeria

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