The Central Bank of Nigeria, CBN, has announced the “abolishment of multiple exchange rates in the Nigerian Foreign Exchange Market.
CBN in a statement signed by its Director of Financial Markets, Dr. Angela Sere-Ejembi says that “all segments are now collapsed into the investors and Exporters (I&E) window” as applications for medicals, school fees, BTA/PTA, and SMEs would however continue to be processed through deposit money banks.
The apex bank also re-introduced the “Willing Buyer, Willing Seller” model at the 18E Window noting that operations in the window shall be guided by the extant circular on the establishment of the window, dated April 21, 2017.
It states that the Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with take effect from June 30, 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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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.
Limits on overbought positions shall be zero. Re-introduction of order-based two-way quotes, with bid-ask spread of A1. Al transactions shall be cleared by a Central Counter Party (CCP). Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades. The operational hours of trades shall be from 9 am to 4 pm, Nigerian time.
(Editor: Terverr Tyav)
