Regulatory Alerts2013-09-26 | BPS/DIR/GEN/CIR/01/042Exposure Draft of the Guidelines on Electronic Payments of Salaries, Pensions,Suppliers and Taxes in Nigeria
This document outlines the guidelines for operations of the foreign exchange auction system in Nigeria, specifically the Retail Dutch Auction System (RDAS), which was implemented from October 2, 2013. It details how the RDAS works and lays out rules and procedures that must be followed by Authorized Dealers when participating in the auctions. The RDAS is a mechanism through which the Central Bank of Nigeria intervenes in the foreign exchange market to stabilize exchange rates and ensure adequate supply of foreign currency for eligible transactions. Participating Authorized Dealers submit their customers' bids using a prescribed format and these bids are evaluated by the CBN, with successful customers' bids debited at the bid rates on Wednesdays and Fridays (T+2). The guidelines also emphasize compliance to avoid contravention of any foreign exchange market regulations, which could lead to appropriate sanctions.