Regulatory Alerts2014-10-28 | TED/FEM/FPC/GEN/01/020Re: Guidelines on the Operations of CBN Interventions in the Interbank Market through the Two-Way Quote System
The Central Bank of Nigeria has issued a circular to authorized dealers, bureaux de change, and the public regarding guidelines for CBN interventions in the interbank market. Effective immediately, funds purchased through CBN interventions must be utilized within two working days at a rate not exceeding 10 kobo above the purchase rate. Non-compliance will result in sanctions.
ENTRAL BANK OF N Corporate Head Office Central Business District P.M.B. 0187, Garki, Abuja, FCT TRADE AND EXCHANGE DEPARTMENT 09 46237802 09 46237809 TED/FEM/FPC/GEN/01/020 October 28, 2014 TO: ALL AUTHORIZED DEALERS BUREAUX DE CHANGE AND THE GENERAL PUBLIC RE: GUIDELINES ON THE OPERATIONS OF CBN INTERVENTIONS IN THE INTERBANK MARKET THROUGH THE TWO-WAY QUOTE SYSTEM Further to our circular referenced TED/FEM/FPC/GEN/01/025 of October 20, 2011 in respect of the above subject, we write to inform all Authorised Dealers and the General Public that/with effect from the date of this circular, funds purchased through the CBN interventions should be utilized within two (2) working days of delivery at a rate not more than 10 kobo above the purchase rate.
Consequently, intervention funds not utilized within (2) days of delivery should be returned to CBN at the original purchase rates.
For the avoidance of doubt, all Authorised Dealers are no longer permitted to sell CBN intervention funds to Authorised Buyers and must ensure compliance with Net Open Trading Position limit. Any observed case of "Position Parking" will be appropriately sanctioned.
Please ensure strict compliance.
O. I. GBADAMOSI DIRECTOR TRADE & EXCHANGE DEPARTMENT