Home >> Breaking News,Business >> CBN Release New Exchange Rate Policy
CBN Release New Exchange Rate Policy

The Central Bank of Nigeria has released a new foreign exchange policy in the country with immediate effect.

The new policy is sequel to last Thursday’s directive by the National Economic Council, for immediate review to stem the widening gap between the inter-bank foreign exchange and parallel market rates.

The CBN said in order to ease the difficulties encountered by Nigerians in obtaining funds for foreign exchange transactions, it would henceforth be providing direct additional funding to banks to meet the needs of Nigerians for personal and business travel, medical needs, and school fees, effective immediately.

The CBN said such retail transactions would be settled at a rate not exceeding 20 per cent above the interbank market rate.
Here is what the CBN governor, Mr Godwin Emefiele stated during the announcement which was aired by CNBC Africa:

“CBN will launch a foreign exchange interbank trading window on Monday to boost the supply of hard currency in Nigeria. The new window will have eight to ten primary traders handling minimum volumes of $10 million.The new system will help with economic growth and restore investor confidence,” he said. “The precise guidelines will be published later on Wednesday.”

Mr Emefiele also stated that the window’s exchange rate will be purely market-driven.

“Nigeria will introduce fx primary dealers to operate with others in the interbank market. Under the new structure the 41 items previously not banned from getting access to forex in Nigeria will remain unchanged.Nigeria’s Forex Reserves is robust an can cover five months of import,” said Emefiele. “The time is right to reintroduce a flexible interbank forex market. Forex market will operate as a single market structure.”

the author

Leave a Reply

Your email address will not be published. Required fields are marked *

Top