Summary of the CBN Governor’s Press Conference on the Flexible Exchange Rate Policy, 15th June 2016.
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The Central Bank of Nigeria Governor outlined changes to Nigeria's flexible exchange rate policy, including making the interbank foreign exchange market a single market driven by market forces, with the CBN participating through periodic interventions. Foreign exchange primary dealers will be registered to deal directly with the CBN for large transactions and with other authorized dealers, and guidelines for the general market and primary dealers will be released immediately with the new system taking effect on June 20.
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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