The Central Bank of Nigeria has notified all authorised dealers and the general public of immediate changes to operations in the Nigerian Foreign Exchange (FX) Market.
In a circular available on the website of the apex bank, the changes announced by CBN include:
- Abolishment of segmentation. 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.”
- Reintroduction of the ‘Willing Buyer, Willing Seller’ model at the I&E window. All eligible transactions are permitted to access foreign exchange at this window.
- Operational rate for all government related transactions shall be the weighted average rate of the previous day’s executed transactions at the I&E window, rounded to two decimal places.
- Proscription of trading limits of oversold FX positions with permission to edge to edge short positions with OTC futures. Limits on overbought positions shall be zero.
- Reintroduction of order-based two way quote, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).
- Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades.
- Operational hours of trade shall be from 9am to 4pm, Nigerian time.
- Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme with effect from 30, June 2023.