The foreign exchange market has undergone new changes, according to the Central Bank of Nigeria (CBN).
Angela Sere-Ejembi, Director, Financial Markets, announced the development in a statement on Wednesday night.
She stated that all transactions would henceforth be conducted through the Investors and Exporters (I&E) window, where market forces will decide the exchange rate.
“The Central Bank of Nigeria (CBN) wishes to inform all authorized dealers and the general public of the following immediate changes to operations in the Nigerian Foreign Exchange (FX) Market:
“Abolishment of segmentation. The Investors and Exporters (I&E) window now includes all segments. Deposit money banks would continue to process applications for medicals, school fees, BTA/PTA, and SMES.
“Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window. The extant circular on the establishment of the window, dated 21 April 2017, and referenced FMD/DIR/CIR/GEN/08/007, shall guide operations in this window. All eligible transactions can access foreign exchange at this window.
“The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two (2) decimal places.
“Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures. Limits on overbought positions shall be zero.
“Re-introduction of order-based two-way quotes, with bid-ask spread of N1.
“Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades. The operational hours of trades shall be from 9 am to 4 pm, Nigeria time.
“Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023. We will communicate further guidance on these matters in due course. We kindly enjoin all market participants and the general public to abide by these rules.”
cc: Daily Trust Ng
