Regulatory Alerts2009-01-15 | TED-FEM-FPC-GEN-01-007-09Further Reduction in Forex Net Open Position (NOP) of Banks
The Central Bank of Nigeria has approved a further reduction of banks' foreign exchange net open positions (NOP) from 10% to 5% of shareholders funds, effective January 19th, 2008. All Authorized Dealers must strictly adhere to this limit in their daily foreign exchange transactions, or face appropriate sanctions. This change follows a previous circular on December 12, 2008, regarding the first reduction of NOP limits.
09 46237811 09 46237809 Central Bank of Nigeria Central Business District P.M.B. 0187 Garki, Abuja E-mail address:ted@cenbank.org TED/FEM/FPC/GEN/01/002/09 January 15, 2009 TO: All Authorised Dealers FURTHER REDUCTION IN FOREX NET OPEN POSITION (NOP) OF BANKS Further to the circular ref: TED/FEM/FPC/GEN/01/132 dated December 12, 2008, all Authorised Dealers are hereby informed that the Management of the Central Bank of Nigeria has approved a further reduction of the foreign exchange NOP of all banks.
Accordingly, the NOP is reduced from 10% to 5% of shareholders funds with effect from January 19, 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.
Batari Musa Ag. Director Trade & Exchange Department