Monday, 27 June 2016 13:08

CBN unveils the new foreign exchange policy. Here’s why you need to be prepared.

VENTURES AFRICA –

The Governor of the Central Bank of Nigeria, Godwin Emefiele, has finally unveiled the flexible exchange rate policy. This comes barely two weeks after he announced at the Monetary Policy Committee meeting that he was going to allow the Naira float freely at the interbank market.

Here is what the CBN governor stated during the announcement which was aired by CNBC Africa:

“CBN will launch a foreign exchange interbank trading window on Monday to boost the supply of hard currency in Nigeria. The new window will have eight to ten primary traders handling minimum volumes of $10 million.The new system will help with economic growth and restore investor confidence,” he said. “The precise guidelines will be published later on Wednesday.”

According to Reuters, the CBN governor also stated that the window’s exchange rate will be purely market-driven.

“Nigeria will introduce fx primary dealers to operate with others in the interbank market. Under the new structure the 41 items previously not banned from getting access to forex in Nigeria will remain unchanged.Nigeria’s Forex Reserves is robust an can cover five months of import,” said Emefiele. “The time is right to reintroduce a flexible interbank forex market. Forex market will operate as a single market structure.”

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