Central Bank of Nigeria (CBN) has announced the unification of all segments of the forex exchange (FX) market.
The apex bank in a circular on Wednesday,said all FX windows are now collapsed into the investors & exporters (I&E) window.
The CBN explained that the move is part of a series of immediate changes to operations in the Nigerian FX market.
“Abolishment of segm theentation. All segments are now collapsed into the Investors and Exporters (I&E) window Applications for medicals, school
fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks,” the circular signed by Angela Sere-Ejembi, director, CBN financial markets department, reads.
FX windows are now collapsed into the investors & exporters (I&E) window.
Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window. Operations in this window shall be guided by the extant circular
on the establishment of the window, dated 21 April 2017 and referenced FM/DIR/CIR/GEN/08/007. All eligible transactions are permitted to 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.
Author: Maureen Ikpeama