Regulatory Alerts2015-01-12 | TED/FEMFPC/GEN/01/001Daily Foreign Currency trading Positions of Banks and Period for Utilisation of Funds
The Trade and Exchange Department is notifying authorized dealers of a change in the daily foreign currency trading positions of banks. Dealers are required to maintain a maximum open limit of 0.1% of their Shareholders' Funds as a foreign currency trading position at the close of each business day. Banks must utilize funds purchased from the autonomous/interbank foreign exchange market within 72 hours or return them to the CBN for repurchase.
TRADE AND EXCHANGE DEPARTMENT 09-61637804 09-61637802 E-mail address: ted@cbn.gov.ng Our Ref: TED/FEM/FPC/GEN/01/001 January 12, 2015 To: ALL AUTHORISED DEALERS DAILY FOREIGN CURRENCY TRADING POSITIONS OF BANKS AND PERIOD FOR UTILIZATION OF FUNDS Further to the Circular Ref: TED/FEM/FPC/GEN/01/029 of December 18, 2014, Authorized Dealers are hereby notified that the daily Foreign Currency Trading positions of banks have been reviewed with immediate effect.
Accordingly, Authorized Dealers are required to maintain 0.1% as maximum open limit of their Shareholders' Funds (SHF) unimpaired by losses as Foreign Currency Trading Position at close of each business day.
In addition, banks are required to utilize funds purchased from the autonomous/interbank Foreign Exchange Market within 72 hours from the value date, failing which such funds must be returned to the CBN for re-purchase at the Bank's buying rate.
Please note and ensure strict compliance.
y O. L. AHUCHOGU (MRS) For: DIRECTOR TRADE & EXCHANGE DEPARTMENT