CBN Announces Operational Changes To FX Market

The Central Bank of Nigeria (CBN) would like to notify all authorized dealers and the general public of the following urgent modifications to operations in the Nigerian Foreign Exchange (FX) Market.

Segmentation is being phased out. The Investors and Exporters (1&E) window now contains all segments. Medicals, school fees, BTA/PTA, and SME applications would continue to be processed through deposit money banks.

The “Willing Buyer, Willing Seller” concept is being reintroduced at the I&E Window. The current circular on the establishment of the window, dated 21 April 2017, and referenced FMD/DIR/CIR/GEN/O8/007, will govern operations in this window.

READ ALSO: CBN Floats Naira, Allowing Banks To Trade FOREX Freely

This window allows all qualified transactions to obtain foreign exchange.

The weighted average rate of the preceding day’s performed transactions at the 1&E window, calculated to two (2) decimal places, shall be the operational rate for all government-related transactions.

Trading limitations on oversold FX positions are prohibited, however, short positions can be hedged with OTC futures. Overbought position limits shall be zero.

READ ALSO: Investigate INEC, Not CBN, Labour Party Tells Tinubu

The reintroduction of order-based two-way quotes with an A1 bid-ask spread. A Central Counter Party (CCP) must clear all transactions.

The Order Book has been reintroduced to ensure order transparency and seamless trade execution.

The trading hours will be from 9 a.m. to 4 p.m., Nigeria time.
With effect from 30 June 2023, the RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme will be phased down.

More information on these topics will be supplied in due time. All market participants and members of the general public are kindly asked to follow these regulations.