RegAlert

Rule · CBN · 24 Jun 2016 · FMD/DIR/GEN/07/001

Externalisation of Differentials on OTC FX Futures Contracts for Foreign Portfolio Investors

fx
payments

The Central Bank of Nigeria has issued a circular to all deposit money banks, outlining the requirements for the externalization of differentials on OTC FX futures contracts for Foreign Portfolio Investors. FPIs participating in the OTC FX Futures Market must present an OTC FX Futures Settlement Advice and a certificate of capital importation to facilitate the externalization of settlement amounts. Requests for repatriation of settlement amounts that do not meet these requirements should not be processed by Nigerian banks.

NigeriaCentral Bank of Nigeria

Website: www.cenbank.org
CENTRAL BANK OF NIGERIA
Corporate Head Office, Central Business District, P.M.B. 0187, Garki, Abuja - F.C.T.

Email: financialmarkets@cbn.gov.no Tel: 09 462 36700, 0946236703 FMD/DIR/GEN/07/001 JUNE 24, 2016 CIRCULAR TO ALL DEPOSIT MONEY BANKS EXTERNALISATION OF DIFFERENTIALS ON OTC FX FUTURES CONTRACTS FOR FOREIGN PORTFOLIO INVESTORS To facilitate the operational efficiency of the emerging OTC FX Futures Market, organised by FMDQ OTC Securities Exchange (FMDQ), the Central Bank of Nigeria, in line with the powers vested on it by the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act 17 of 1995 and the BOFI Act of 1991, hereby issues the operational requirements to guide the externalisation of the differentials on OTC FX Futures Contracts for Foreign Portfolio Investors (FPIs):
i. Along with the requisite certificate of capital importation (CCI), all participating FPIs in the OTC FX Futures Market are required to present an OTC FX Futures Settlement Advice (to be issued by FMDQ) to facilitate the externalisation of the settlement amount (the differential between the OTC FX Futures and the Nigerian Inter-Bank Foreign Exchange (NIFEX) fixing on the settlement date) of OTC FX Futures Contracts.

ii. For the avoidance of doubt, requests for repatriation of settlement amount of OTC FX Futures Contracts by FPIs that are not accompanied with the requisite Settlement Advice from FMDQ, and the CCI should not be processed by any deposit money bank in Nigeria.

S. A. Olih
For: SA/Head, Financial Markets Department

Note from RegAlert. AI assistants can read this document in full, and search 70,000+ more, through the RegAlert MCP connector (https://mcp.regalert.today/mcp). Free with an account. How to connect ChatGPT, Claude or Cursor.

Lineage: No known changes

RegAlert holds no document that amends or replaces this one. This is not a check that it is in force: confirm with the regulator.

BOFI Act of 1991Not in RegAlertBOFI Act of 1991 — Not in RegAlertForeign Exchange (Monitoring andMiscellaneous Provisions) Act 17 …Not in RegAlertForeign Exchange (Monitoring and Miscellaneous Provisions) Act 17 of 1995 — Not in RegAlertExternalisation ofDifferentials on OTC FX Futur…2016-06-24 · this documentExternalisation of Differentials on OTC FX Futures Contracts for Foreign Portfolio Investors (2016-06-24)
amendssupersedesissued underrefers todashed card: not in RegAlert (or proposed)arrows run from the older text to the one that changes it
The links and the sentences they come from (2)
Issued under
  • BOFI Act of 1991Not in RegAlert

    “and the BOFI Act of 1991”

  • Foreign Exchange (Monitoring and Miscellaneous Provisions) Act 17 of 1995Not in RegAlert

    “in line with the powers vested on it by the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act 17 of 1995”

More like this from CBN

We email you every new CBN publication the day it's published.

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

In RegAlert: added · updated

FX rules change often. Get an email the day any regulator we track changes its foreign-exchange rules.