CBN Restates Commitment To Boost Liquidity in FOREX Market
(Business Africa Digest)-The Central Bank of Nigeria (CBN) has reiterated it’s commitment to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates on a Willing Buyer – Willing Seller principle.
In a statement signed by the Director of Corporate Communications, Isa Abdulmumin(PhD), the apex bank said the prevailing Foreign Exchange (FX) rates should be referenced
from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates.
The CBN also said as part of its responsibility to ensure price stability, it will boost liquidity in the
Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease.
The bank further noted that Importers of all the 43 items previously restricted by the 2015 Circular referenced
TED/FEM/FPC/GEN/01/010 and its addendums are now allowed to purchase foreign
exchange in the Nigerian Foreign Exchange Market, stressing that the apex bank is committed to accelerating efforts to clear the FX backlog with existing
participants and will continue dialogue with stakeholders to address the issue.
The CBN has however set as one of its goals the attainment of a single FX market, adding that consultation is ongoing with market participants to achieve this goal.
Participants and the general public are to be guided by this new development .
