Regulatory Alerts2012-07-24 | TED.FEM.FPC.GEN.01.018.2012Reduction of Foreign Exchange Net Open Position (NOP)Limit of Banks
The Nigerian Central Bank's Trade and Exchange Department announced on July 24, 2012 that the Monetary Policy Committee has decided to reduce the foreign exchange Net Open Position (NOP) limit of Authorised Dealer banks from three percent to one percent of net shareholders' funds. This reduction is effective immediately, and any non-compliance may result in sanctions including suspension from the foreign exchange market. This circular supersedes a previous notice on the same topic dated October 20, 2011.
CENTRAL BANK OF NIGERIA Corporate Head Office Central Business District P.M.B. 0187, Garki, Abuja, FCT TRADE & EXCHANGE DEPARTMENT 09 46237804 09 46237802 Tel: Fax: E-mail address:ted@cenbank.org July 24, 2012 TED/FEM/FPC/GEN/01/018 TO: ALL AUTHORISED DEALERS REDUCTION OF FOREIGN EXCHANGE NET OPEN POSITION (NOP) LIMIT OF BANKS The Monetary Policy Committee (MPC) at its meeting held from 23rd - 24th July, 2012 reviewed the foreign exchange Net Open Position (NOP) limit of Authorised Dealer banks.
Accordingly, the current limit of three percent (3%) has been reduced to one percent (1%) of net shareholders' funds with effect from the date of this circular.
This circular supersedes the one Ref: TED/FEM/FPC/GEN/01/024 of October 20, 2011 on the subject.
All Authorised Dealers are required to ensure compliance as any breach shall attract appropriate sanctions, including suspension from the foreign exchange market.
warm ATARI MUSA DIRECTOR TRADE & EXCHANGE DEPARTMENT