Regulatory Alerts2009-02-03 | TED-FEM-FPC-GEN-01-26-2009Retail Durch Auction System (RDAS): sale of foreign Exchange by Oil and Oil Services Companies, NNPC, and Other Government Agencies
The Nigerian Governor, Bank of Nigeria, has issued a circular dated February 25, 2009, requiring oil and oil services companies, NNPC, NPA, NMA, Shippers Council, and other government agencies to sell their foreign exchange receipts only to the Central Bank of Nigeria (CBN). This change takes effect from February 26, 2009. The CBN will buy these foreign exchange receipts at a price no more than 1% below its immediate past selling price in the Retail Dutch Auction System (RDAS). This supersedes an earlier circular that allowed them to sell their foreign exchange receipts to Authorised Dealers. This is aimed at ensuring consistency with RDAS framework, avoiding leakages and abuses of foreign exchange utilization.
The Governor Bank of Nigeria TED/FEM/FPC/GEN/01/024 TO: ALL AUTHORISED DEALERS, OIL AND OIL SERVICES COMPANIES, GOVERNMENT AGENCIES February 25, 2009 RETAIL DUTCH AUCTION SYSTEM (RDAS): SALE OF FOREIGN EXCHANGE BY OIL AND OIL SERVICES COMPANIES, MAPC AND OTHER GOVERNMENT AGENCIES In order to ensure consistency with the RDAS framework, avoicl leakages and abuses in the utilization of foreign exchange, the procedures for the sale of foreign exchange by oil and oil services companies, NNPC, NPA, NMA and Shippers Council, and other Government agencies to meet their local commitments are hereby reviewed as follows: (i) ' With effect from February 26; 2009, oil_and oil services companies operating in Nigeria are now to sell their foreign exchange receipts to the Central Bank of Nigeria only; (ii) All Government agencies earning foreign exchange, including the Nigərian National Petroleum Corporation (NNPC), Nigerian Ports Authority, Nigerian Maritime Authority, the Shippars Council, etc are required to sell their foreign exchange to meat their local currency requirements to the CBN only; The price at which the CBN stands ready to buy the foreign exchange shall be at no more than one per cent (1%) below its immediate past selling price at the RDAS.
(iii)
Central Bank Of Nigeria
Authorised Dealers, Oil and Oil Services Companies, and all relevant Government agencies are required to note and comply fully.
This circular supersedes the earlier one Ref. TED/AD/94/99 of 19* October, 1999 which allowed these agencies and companies to sell their foreign exchange to Authorized Dealers.
eHUKWUMA C. SOLUDO (CFR) PRC GOVERNO CENTRAL BANK OF NIGERIA