CBN's announces new forex policy


Only authorised dealers will be allowed to trade on interbank markets henceforth – CBN says it will release guidelines to primary dealers on Friday The Central Bank of Nigeria (CBN) has officially announced a new foreign exchange policy and has listed some implications of new development.
The implication of this is that the Nigerian currency has been floated and that there will be a single market for acquisition of the foreign currency. Godwin Emefiele, the CBN governor, made this announcement during a press conference in Abuja on Wednesday afternoon. Analysts including those at Renaissance Capital Ltd had said they expect the CBN to allow the naira to weaken around a trading band in the interbank market, while allocating dollars at a fixed rate to industries the government deems strategic.

According to Channels TV, the market would operate as a single market structure via the interbank market and authorised dealers an implication that it would be purely an exchange rate market managed via Thompson Reuters platform. It stated also that part of the key notes is that the CBN would participate via periodic intervention and would introduce primary dealers that deal with the CBN on a two way quote basis while the primary dealers are also expected to deal with other players in the interbank market. Also, there shall be no pre-determined spreads on forex transactions and all forex purchases shall be transferable while 41 items shall remain inadmissible in the forex market for forex transactions.

 Therefore, the CBN will also offer long term forex futures and sales of forex forwards for end users must be trade-backed as well as introduce non-deliverable OTC forex settled trades to help moderate volatility. Only authorised dealers are allowed to purchase proceeds of forex daily at the interbank rates guidelines of which the CBN says it will introduce to primary dealers on Friday. Consequently, interbank trading would begin on Monday, June 20 and tenors and rates for OTC settled forex feature would be announced same day.
Read more: https://www.naij.com/861413-breaking-cbn-finally-announces-new-foreign-exchange-policy.html

Comments

Post a Comment

Popular posts from this blog

El-Rufai’s Son Killed In Auto Crash

Image
Former Minister of the Federal Capital Territory, FCT, Mallam Nasir El-Rufai, has lost one of his sons in a car crash. Hamza El-Rufai died Tuesday morning in Abuja. The former Minister and Chieftain of the All Progressive Congress, APC, broke the news on his faceboook page today. El-Rufai wrote: “From Allah, we came and to Him we shall return. Please join our family in praying for the repose of the soul of my son, Hamza El-Rufai who died in a motor accident in Abuja.” See more photo below:
Read more

Kim Kardashian blasts Kendall Jenner – “I bought her a F***ING career!”

Image
There will be no shortage of family drama in season 10 of Keeping Up With The Kardashians. The first look trailer released Monday for the upcoming season of the highly-popular E! series features plenty of fights, sex, romance and even infringement claims for reality television's favourite family. In one of the more tense moments in the clip, Kim Kardashian appears to lash out at younger sister Kendall Jenner, who has a fast growing modelling career.
Read more

Billy Bob Thornton Denies Sleeping With Amber Heard

Image
The domestic violence case between Amber Heard and Johnny Depp is getting messier by the minute, and now they're dragging other people in the midst of their conflict. Depp apparently accused his wife of cheating on him with Billy Bob Thornton back in 2015, but the actor has completely denied all allegations. 'Our Brand Is Crisis' star Billy Bob Thornton has branded the suggestion that he slept with Amber Heard during the production of their latest movie 'London Fields' as 'completely false' according to reports from TMZ . The story is that he 'never socialized with Amber off set, other than a cast dinner', and adds that he had no on-set contact with her either, other than in a professional capacity. Of course, in the movie, their character's are close; it follows the story of a manipulative young woman named Nicola Six (Heard) who strings along three men including a writer named Samson Young (Thornton) in a bid to bring about her own murder. Jo
Read more