CBN announces new rules for foreign exchange market, end Naira4Dollar transfers, RT200 rebate

New operational modifications to the nation’s foreign exchange market have been announced by the Central Bank of Nigeria.

All international market sectors were eliminated by the Apex Bank as part of the new operating reforms and combined into the Investors and Exporters (I&E) window.

The policy said that applications for medical care, school fees, BA/PTA dues, and SMEs will still be processed through deposit money banks and was signed by Angela Sere-Ejembi, Director, Financial Markets.

The “Willing Buyer, Willing Seller” concept was reinstated by the CBN in the latest adjustments at the I&E Window.

It noted that the FMD/DIR/CIR/GEN/08/007 mentioned existing circular dated 21 April 2017 would serve as the operational manual for this window.

It was also said that this window allows access to foreign exchange for all qualifying transactions.

According to the CBN, the weighted average rate of the previous day’s conducted transactions at the I&E window, calculated to two (2) decimal places, shall be the operational rate for all government-related transactions.

Additionally, it stated that overbought holdings would not be subject to trading limits and that oversold FX positions would be allowed to use OTC futures to hedge their short positions.

Additionally, the apex bank announced the return of order-based two-way quotes with an A1 bid-ask spread. A Central Counter Party (CCP) is required to clear every transaction, it was added.

In order to guarantee order transparency and seamless trade execution, the Order Book was also reinstituted.

The Naira4Dollar Remittance Scheme and the Cessation of RT200 Rebate Scheme were both announced by the bank, both with a start date of 30 June 2023.