CBN Announces Operating Hours for Forex Transactions, Ends Godwin Emefiele’s 2 Dollar Schemes

CBN Announces Operating Hours for Forex Transactions, Ends Godwin Emefiele’s 2 Dollar Schemes

  • The Central Bank of Nigeria (CBN) has announced significant operational changes to the country's foreign exchange (FX) market
  • These changes include the consolidation of all FX market segments into the Investors and Exporters (I&E) window and new FX operating hours
  • CBN hopes these measures will go a long way to enhance transparency and attract more foreign investors to the country

The Central Bank of Nigeria (CBN) has set operating hours from 9 am to 4 pm for commercial banks to conclude foreign exchange transactions.

CBN disclosed this in a statement issued on Wednesday, June 14, 2023, which announced several operational changes to the foreign exchange market.

The statement was signed by Angela Sere-Ejembi, the director of Financial Markets.

CBN foreign exchange
CBN has announced changes in forex operation in Nigeria. Photo credit: Bloomberg / Contributor
Source: Getty Images

Also, in the statement, CBN announced that it would end the RT200 FX Programme and the Naira4Dollar scheme by the end of June 2023.

Read also

CBN abolishes multiple exchange rates as Naira falls in official market to N775 to a dollar

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The RT200 FX Programme and the Naira4Dollar scheme were initially introduced by the suspended CBN Governor, Godwin Emefiele, to incentivise the repatriation of non-oil foreign exchange proceeds into the official market.

However, with the recent decision to allow buyers and sellers to negotiate rates without intervention from the central bank, these programs have become redundant.

Part of the circular reads:

"Cessation of R T200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023."

More operational changes to Nigeria's forex market

Additionally, the CBN also directed the facilitation of foreign exchange for BTA/PTA (Business Travel Allowance/Personal Travel Allowance) and SMEs (Small and Medium Enterprises) applicants through the Investors and Exporters (I&E) window.

The statement added:

"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,” CBN said in the statement."

Read also

Naira sells for as high as N791 to dollar at official market, as CBN obeys President Tinubu's instructions

List of other forex changes

  • Re-introduction of the "Willing Buyer, Willing Seller" model at the I&E Window.
  • Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades
  • Re-introduction of order-based two-way quotes, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).
  • Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures. Limits on overbought positions shall be zero.
  • 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.

CBN gets news acting Governor, Folashodun Adebisi Shonubi

In another report, Legit.ng profiled the new acting CBN governor, Folashodun Adebisi Shonubi, and his career journey.

Shonubi was considered for the role by President Tinubu among four deputy governors: Aisha Ahmed, Edward Adamu, and Kingsley Obiora.

By law, one of the deputies must complete Emefiele’s tenure, which was expected to expire on May 2024.

Source: Legit.ng

Authors:
Dave Ibemere avatar

Dave Ibemere (Senior Business Editor) Dave Ibemere is a senior business editor at Legit.ng. He is a financial journalist with over a decade of experience in print and online media. He also holds a Master's degree from the University of Lagos. He is a member of the African Academy for Open-Source Investigation (AAOSI), the Nigerian Institute of Public Relations and other media think tank groups. He previously worked with The Guardian, BusinessDay, and headed the business desk at Ripples Nigeria. Email: dave.ibemere@corp.legit.ng.

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