JUST IN: CENTRAL BANK ANNOUNCES OPERATIONAL CHANGES TO FOREIGN EXCHANGE MARKET
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Cancels Naira4Dollar Remittance Scheme and RT200 Rebate Scheme
By ‘Leke Yusuf
The Central Bank of Nigeria on Wednesday evening announced a new set of guidelines in the Nigerian Foreign Exchange (FX) Market.
In a statement signed by CBN’s Director of Financial Markets, Angela Sare-Ejembi, all segments of the FX Market are now collapsed into theInvestors and Exporters (I&E) window. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
Other guidelines are as listed below:
OPERATIONAL CHANGES TO THE FOREIGN EXCHANGE MARKET
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 All segments are now collapsed into theInvestors and Exporters (I&E) window. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
- Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Operations in this window shall be guided by the extant circularon the establishment of the window, dated 21 April 2017 and referenced FMD/DlR/ClR/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 tohedge short positions with OTC Limits on overbought positions shall be zero.
- Re-introduction of order-based two-way quotes, with bid-ask spread of All transactions shall be cleared by a Central Counter Party(CCP).
- Reintroduction of Order Book to ensure transparency of orders andseamless execution of
- The operational hours of trades shall be from 9am to 4pm, Nigeria
- Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30June 2023.
Further guidance on these matters shall be communicated in due course. All market participants and the general public are kindly enjoined to abide by these rules.
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