Regulatory Alerts2015-01-21 | TED/FEM/FPC/GEN/01/002Utilization of rDAS and Interbank Funds/Review of the Foreign Exchange Trading Positions of Banks
The Central Bank of Nigeria is informing authorized dealers that rDAS and interbank funds are to be used solely for funding Letters of Credit, Bills for Collection, and other invisible transactions, with proper documentation. The CBN will continue its weekly forex sales to BDCs based on market liquidity needs, and the Net Foreign Exchange trading position has been increased to 0.5% of the "shareholder's fund" unimpaired by losses. Strict compliance with these directives is expected.
CENTRAL BANK OF NIGERIA Corporate Head Office Central Business District P.M.B. 0187, Garki, Abuja, FCT TRADE AND EXCHANGE DEPARTMENT 09 46237802 09 46237804 E-mail address: ted@cbn.gov.ng TED/FEM/FPC/GEN/01/002 January 21, 2015 TO: ALL AUTHORIZED DEALERS AND THE GENERAL PUBLIC UTILIZATION OF rDAS AND INTERBANK FUNDS/REVIEW OF THE FOREIGN EXCHANGE TRADING POSITIONS OF BANKS This is to inform all authorized dealers that in continuation of the review of developments in the foreign exchange market and to curb speculative demand in the market, both rDAS and interbank funds should henceforth be used, strictly for funding of Letters of Credits, Bills for Collection and other invisible transactions, subject to appropriate documentation as provided by extant regulations.
Consequently, rDAS and interbank funds should no longer be sold to BDC's and other Authorized Buyers. Meanwhile, the weekly sales of forex to BDC's will be sustained by the CBN based on the liguidity needs of the market.
In addition, the Net Foreign Exchange trading position has been reviewed upward, from 0.1% of the "shareholder's fund" unimpaired by losses, to 0.5% of the "shareholder's fund" unimpaired by losses.
AURAT BAMK OF MICH
Please ensure strict compliance.
OLAKANMI I. GBADAMOSI DIRECTOR TRADE & EXCHANGE DEPARTMENT