- The Central Bank of Nigeria has reacted to reports announcing a new policy for the foreign exchange market
- Since the new administration took office, the apex bank has taken several measures to ensure the naira finds its true value against the dollar and other currencies
- In the official market, the naira appreciated against the United States dollar after the CBN injected more forex into the market
Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
The Central Bank of Nigeria (CBN) has refuted rumours that it has introduced new policy actions in the foreign exchange market.
In a message posted on its official X, formerly Twitter, handle, the CBN described the rumours as old news.
The apex bank explained that the press release dated 20th February 2017 should be disregarded.
CBN statement reads:
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through email@example.com!
“Not more than 2.5%”: CBN releases new rules for 5,691 BDC operators when buying, selling dollars to customers
“We would like to bring to your attention that the attached images currently circulating on social media are from an old Press Release dated 20th February 2017 and should be please disregarded."
CBN forex policy
Some of the changes include the end of the RT200 FX Programme and the Naira4Dollar scheme by the end of June 2023.
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.
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.
Nigerian currency, the naira, reacted positively to the ongoing changes in the forex market, further appreciating the black market, the Investors and Exporters (I&E), and the Peer-to-Peer (P2P) segments.
At the official market, the naira closed at N740.67/$1 on Thursday, August 17, 2023, compared with the preceding day’s N759.86/$1.
While in the P2P window, the naira improved its value against the US Dollar on Thursday by N46 to close at N841/$1.
It was also a positive day for the naira on the black market, trading at N840/$1 a dollar.
It was also the same story for Nigerian currency against the Pounds Sterling and Euro.
According to CBN data, the Naira exchange rate improved by N27 against the Pound Sterling at the spot market to close at N951.73/£1 versus the previous day’s value of N978.83/£1.
While against the Euro, CBN reports that the Nigerian currency recorded a N24.37 gain to finish at N812.62/€1 compared with the preceding session’s N836.99/€1.
“No more tricks to buy cheap dollar”: CBN introduces forex price verification portal as naira recovers
“No more tricks": CBN announces dollar to naira price verification portal
Meanwhile, in another report, it was revealed that the Central Bank of Nigeria had introduced a new portal that will put an end to malpractices in the foreign exchange market.
The portal is set to go live by the end of August 2023, and it is expected that it could be a game-changer if it is done right