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Summaryof the CBN Governor’sPressConferenceonthe FlexibleExchange Rate Policy,15th
June
2016.
 Market will operate as single marketthrough the interbank
 FX Rate will be purely market-driven
 CBN will participate through periodic interventions
 FX primary dealers will be registered to deal directlywith the CBN for large deal sizes.FX primary
dealers will deal with other authorised dealers
 There will be no more spread restrictions
 The 41 items classified for notvalid for FX are still not admissible in FX interbank market
 CBN may offer long-tenored FX forwards
 Selling ofFX forwards mustbe trade backed with no pre-determined spreads
 OTC FX futures will be introduced.The OTC FX futures are bespoke and volumes could be non-
standard
 Non-oil exporters are now allowed unfettered access to export proceeds via the interbank market
Timelines
 Guidelines ofthe general FX market will be released immediately
 Guidelines for FX primarydealers will be released immediately
 FX primary dealers will be appointed and notified byJune 17, 2016
 Interbank FX trading under the new guidelines will begin on June 20,2016

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Summary of the CBN Governor’s Press Conference on the Flexible Exchange Rate Policy, 15th June 2016.

  • 1. Summaryof the CBN Governor’sPressConferenceonthe FlexibleExchange Rate Policy,15th June 2016.  Market will operate as single marketthrough the interbank  FX Rate will be purely market-driven  CBN will participate through periodic interventions  FX primary dealers will be registered to deal directlywith the CBN for large deal sizes.FX primary dealers will deal with other authorised dealers  There will be no more spread restrictions  The 41 items classified for notvalid for FX are still not admissible in FX interbank market  CBN may offer long-tenored FX forwards  Selling ofFX forwards mustbe trade backed with no pre-determined spreads  OTC FX futures will be introduced.The OTC FX futures are bespoke and volumes could be non- standard  Non-oil exporters are now allowed unfettered access to export proceeds via the interbank market Timelines  Guidelines ofthe general FX market will be released immediately  Guidelines for FX primarydealers will be released immediately  FX primary dealers will be appointed and notified byJune 17, 2016  Interbank FX trading under the new guidelines will begin on June 20,2016