Utilization of rDAS and Interbank Funds/Review of the Foreign Exchange Trading Positions of Banks

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