CBN Direct Commercial Banks to Pledge Collateral of N1bn Worth of Government Securities for OTC Trade Settlement

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The Central Bank of Nigeria (CBN) in an effort to enhance efficiency in trading and post-trade activities and build confidence in the financial markets, hereby directs all Deposit Money Banks (DMBs) to pledge collateral of N1billion (One Billion Naira) worth of Government Securities for OTC trade settlement.

The pledge requirement is mandatory for all DMBs that wish to participate in OTC Trade Settlement. Lack of provision of the pledge or failure to top-up a pledge when required will result in exclusion from the market.

This circular takes effect from June 1, 2018.

Please ensure compliance.

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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