Emerging Markets Rates and Currencies Handbook

FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Market    ✗ ✗ ✗ ✗ Offshore Market ✗ ✗  ✗ ✗ ✗  Onshore Volume (MM USD Daily) Offshore Volume (MM USD Daily) Onshore Max Tenor (Or Typical Tenor For Spot) Offshore Max Tenor (Or Typical Tenor For Spot) Onshore Typical Deal Size (MM USD) Offshore Typical Deal Size (MM USD) 25 – 150 N/A T + 2 N/A 0.5 – 3 N/A 5 – 50 N/A 5 years N/A 0.5 – 3 N/A 15 - 35 10 - 15 5 years 2 years 0.5 - 3 1-5 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Negligible, settled on NDF basis N/A 5 years N/A Transactions are episodic CitiFX Pulse Capabilities  ✗ ✗ ✗ ✗ ✗ ✗ Source: Citi indicative information Market opening hours and liquidity during the day Fixing USDNGN Fixing - NAFEX. Fixes daily at 12 noon. Bloomberg Code - NIGNNAFX. Regulation Offshore Restrictions: Onshore entity (e.g. resident corporate) is not permitted to transact FX with an offshore entity (e.g. offshore bank) in NGN as it does not settle offshore. Exchange controls will apply where an onshore entity requests to settle foreign currency to the offshore counterparty i.e. such payments must conform with existing regulations. Non-Resident Restrictions: Non-resident entities (e.g. non-resident corporate) are permitted to transact FX with onshore entities (e.g. onshore bank). Some documentation may be required for Left Hand Side (LHS) trades like board resolution, Certificate of CapitaI Importation (CCI) request etc. Documentation is also required for Right Hand Side (RHS) trades. The specific documentation will depend on the nature of the underlying payment. License Requirements Not applicable. Requirements to open a foreign currency account Corporates are allowed to open a foreign currency account but the NGN is not convertible. Foreign currency accounts cannot be funded from local currency. Deal Management Rollover: Yes, with supporting documents. Gross-settled. Unwinding: Not Allowed. Early Maturity: Not Allowed. Documentation Requirements For both FX Spot and Forwards: Bid side – limited controls (FCY to NGN). Offer side - subject to the rules of the Central Bank of Nigeria Foreign Exchange Manual (NGN to FCY). Trade Flows The Central Bank of Nigeria Foreign Exchange Manual