RegAlert2015-01-29 | BSD/DIR/GEN/LAB/08/006Added · Updated
Daily Rendition of Net Open Position
The Central Bank of Nigeria issued a letter to all banks, reminding them of the prudential regulation for managing foreign exchange risks. The regulation states that the Net Open Position of foreign currency assets and liabilities should not exceed 20% of a bank's unimpaired shareholder funds. The CBN now requires banks to compute the NOP daily and submit it to the provided email address.
CBN published 1 document in the last 30 days — get each new one by email the day it lands.
09-462 36403 January 28, 2015 BSD/DIR/GEN/LAB/08/006 LETTER TO ALL BANKS DAILY RENDITION OF NET OPEN POSITION Please recall that the Central Bank of Nigeria issued a circular dated October 24, 2014 and referenced BSD/DIR/GEN/LAB/07/037, titled "Prudential Regulation for the Management of Foreign Exchange Risks of Banks". The regulation provides among others that the Net Open Position (NOP) of foreign currency assets and liabilities (on and off-balance sheet) of a bank should not exceed 20% of its shareholders' funds unimpaired by losses. In this regard, banks were required to compute the NOP on a monthly basis using the Gross Aggregate method. However, the CBN has considered it necessary that banks should henceforth compute the NOP on a daily basis and forward same to BSDReturns@cbn.gov.ng. This circular takes immediate effect. Please be guided accordingly. Yours faithfully, 'TOKUNBO MARTINS (MRS.) DIRECTOR OF BANKING SUPERVISION
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Source: Central Bank of Nigeria — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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