By InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) on Wednesday directed banks to henceforth compute their Net Open Position (NOP) on a daily basis and forward same to the CBN.

This is contained in a circular with reference number BSD/DIR/GEN/LAB/08/006 dated January 28, 2015 and signed by Tokunbo Martins, director of banking supervision at the CBN.

The CBN in October last year had directed that all banks to ensure that NOP of foreign currency assets and liabilities (on and off-balance sheet) should not exceed 20 percent of its shareholders’ funds unimpaired by losses.

In this regard, banks were required to compute the NOP on a monthly basis using the Gross Aggregate method.