By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s Central Bank Tuesday reduced its Foreign Exchange Net Open Position (NOP) limit to Banks to one percent (1%) down from 3%.
This was contained in a Circular with reference number TED/FEM/FPC/GEN/01/018 and dated July 24 2012 signed by Batari Musa, Director Trade & Exchange Department at Nigeria’s Central Bank as part of the decisions reached at the Monetary Policy Committee (MPC) Meeting held July 23 to 24 in Abuja Nigeria.
“Accordingly, the current limit of three percent (3%) has been reduced to one percent (1%) of Net Shareholders Funds with effect from the date of this Circular†the CBN said.
The CBN affirmed that this Circular supersedes the one with reference number: TED/FEM/FPC/GEN/01/024 of October 20 2011.
The CBN further affirmed that all Authorised Dealers are required to comply to this new directive; failure to do so will attract appropriate sanctions; including suspension from the Foreign Exchange Market.
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