Finally, CBN liberalises Forex market
The Central Bank of Nigeria (CBN) has finally coved in to pressure and announced new foreign exchange policy that would be purely market driven.
Speaking at a press briefing at the bank headquarters, this afternoon, the CBN Governor, Godwin Emefiele said the structure of the market shall operate as a single market through the inter-bank/autonomous window.
According to him, the Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book.
But the governor said the CBN would participate in the market through periodic interventions to either buy or sell FX as the need arises.
“To improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis.
“The new Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines, which would also be released soon”.
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