WHAT IS A ROLLOVER OF A CLEARED USD/NGN NDFs CONTRACT UNDER THE PROVISIONS OF MB-33?

WHAT IS A ROLLOVER OF A CLEARED USD/NGN NDFs CONTRACT UNDER THE PROVISIONS OF MB-33?

A “rollover” is the purchase of a Cleared USD/NGN NDFs contract of the same amount and tenor as the initial Cleared USD/NGN NDFs contract used to hedge the foreign exchange risk of an eligible underlying Foreign Port folio Investment (“FPI”) and which is specifically booked as a “rollover”. To clarify; a 6M Cleared USD/NGN NDFs contract purchased for an FPI transaction with a valid Certificate of Capital Importation (“CCI”), may be rolled over upon maturity of the 6M Cleared USD/NGN NDFs contract as long as the CCI remains valid, without paying the associated Clearing Fees that would be payable if the contract is treated as anew (non-rollover) contract.

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