In order to enhance trade efficiency, post-trade activities and confidence build up in the financial market, the Central Bank of Nigeria yesterday ordered all Commercial banks to pledge N1 billion collateral in Government/CBN Securities.
The circular was signed by Alvan Ikoku, CBN Director, Financial Markets Department and sent to all Deposit Money Banks (DMB). The pledge is to enable participation in Over-the-Counter (OTC) trade settlement.
According to Alvan, the pledge is not optional but mandatory for all DMBs that intend participating in trade settlement and failure to provide for the pledge or failure to top-up a pledge when required will lead to an exclusion from the market.
He said the circulation takes effect from today June 1, 2018.
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