2009-10-02 | TED-FEM-FPC-GEN-01-014-2009

Further Guidelines on The Operatives Of The Foreign Exchange Market

The Central Bank of Nigeria (CBN) has issued new guidelines for the operations of Nigeria's foreign exchange market. The bank is committed to managing the exchange rate within a +3% margin until further notice. All commercial banks and authorized dealers must maintain a net open position equal to 1% of shareholders' funds, with all purchases of foreign exchange being used solely for customer transactions and not for inter-bank transactions. Authorized dealers must ensure their buying and selling rates remain within 1% of the CBN rates. Violations will result in appropriate sanctions including potential suspension from foreign exchange transactions.

Nigeria

Central Bank of Nigeria

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