Posted by From Kunle Aderinokun in Abuja on
Central Bank of Nigeria (CBN) has issued new foreign exchange guidelines, which amongst others allow foreigners to invest in treasury bills that have maturity of more than one year.
Central Bank of Nigeria (CBN) has issued new foreign exchange guidelines, which amongst others allow foreigners to invest in treasury bills that have maturity of more than one year.
In a set of new guidelines which will become effective from September 1, the apex bank directed that all current investments by foreigners in treasury bills of a tenor less than one year, will be allowed to run till their maturity, after which they are expected to be liquidated and the proceeds invested in treasury bills with a tenor not less than one year.
In circular referenced TED/AD/75/2005 signed by its Director, Trade and Exchange Department, Mrs. O.O. Akanji and issued to all authorized forex dealers, the CBN also stated that 'current transactions executed on the basis of the old Manual should therefore be wound up by August 31, 2005. For the avoidance of doubt, all foreign exchange transactions executed after August 31, 2005 will be, on the basis of the provisions of the new Foreign Exchange Manual."
The circular read thus: 'This is to inform all Authorised Dealers that, the provisions of the new Foreign Exchange Manual will come into force on September 1, 2005.
'This means that from that date, the provisions of the old Foreign Exchange Instructions Manual will no longer be applicable for the processing of foreign exchange transactions.
'Current transactions executed on the basis of the old Manual should therefore be wound up by August 31, 2005. For the avoidance of doubt, all foreign exchange transactions executed after August 31, 2005 will be, on the basis of the provisions of the new Foreign Exchange Manual.