Section 24: Composition of external reserves.

(1) The Bank shall at all times maintain a reserve of external assets consisting of all or any the following-
(a) gold coin or bullion;
(b) balance at any bank outside Nigeria where the currency is freely convertible and in such currency, notes, coins, money at call and any bill of exchange bearing at least two valid and authorised signatures and having a maturity not exceeding ninety days exclusive of days of grace;
(c) treasury bills having a maturity not exceeding one year issued by the Government of any country outside Nigeria whose currency is freely convertible;
(d) securities of, or guarantees by, a government of any country outside Nigeria whose currency is freely convertible provided such securities shall mature in a period not exceeding ten years from the date of acquisition and are of such investment grade as may be determined by the Board from time to time;
(e) securities of, or guarantees by, international financial institutions if such securities are expressed in currency freely convertible, in the form of investment grade assets as may be determined by the Board and maturity of the securities shall not exceed five years;
(f) Nigeria's gold tranche in the International Monetary Fund;
(g) allocation of Special Drawing Rights made to Nigeria by the International Monetary Fund;
(h) investment by way of loans or debenture in an investment bank or development financial institutions within or outside Nigeria for a maximum period of five years in so far as-
(i) the amount invested is not more than 5% of the total foreign reserves,
(ii) the reserve level at the time of investment is more than such amount as will sustain twenty-four months of import, and
(iii) the loan or debenture is denominated in foreign currency:
Provided the investment bank or development financial institution referred to in paragraph (h) of this section carries such a rating by rating agencies as may be prescribed from time to time by the Bank; and
(i) such other securities and investment as may be approved from time to time by the Board.
Provided they are liquid foreign currency assets that are of investment grade and in the form of freely convertible currencies.