Regulatory Alerts2011-10-20 | TED.PFO.FPC.GEN.01.024Re: Reduction of Foreign Exchange Net Open Position (NOP)Limit of Banks
The Central Bank of Nigeria's Trade and Exchange Department has issued a circular increasing the foreign exchange Net Open Position Limit (NOP) for Authorised Dealer Banks from 1% to 3% of their net shareholders' funds, effective October 24th, 2011. This supersedes an earlier circular on the same subject. Non-compliance may result in sanctions.
orporate Head Office Central Business District P.M.B. 0187. Garki, Abuja, FCT TRADE & EXCHANGE DEPARTMENT Tel:......... 09 46237804 Fax: E-mail address:ted@cbn.gov.ng TED/PFO/FPC/GEN/01/024 October 20, 2011 TO: ALL AUTHORISED DEALERS, RE: REDUCTION OF FOREIGN EXCHANGE NET OPEN POSITION (NOP) LIMIT OF BANKS Further to the circular reference TED/FEM/FPC/GEN/01/019 dated October 10, 2011 the foreign exchange Net Open Position Limit of Authorised Dealer Banks has been reviewed upward. Accordingly, the current limit has been increased from one percent (1%) to three percent (3%) of net shareholders' fund with effect from Monday, 24th October, 2011.
This circular supersedes the one under reference on the same subject.
All Authorised Dealers are enjoined to ensure compliance to avoid sanction.
TRADE AND EXCHANGE DEPARTMENT