CBN announces Abolishment of multiple exchange rates
Written by Samson Ojeniran on June 15, 2023
The Central Bank of Nigeria Has announced the Abolishment of multiple exchange rates in the Nigerian foreign exchange market.
CBN in a Press Statement signed by the Director Financial Markets Angela Sere-Ejembi stated that all segments are now collapsed into the investors and Exporters (I&E) window as Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
The CBN also Re-introduce the “Willing Buyer, Willing Seller” model at the 18E Window noting that Operations in the window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 .
It stated that the Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023. Further guidance on these matters shall be communicated in due course. Al market participants and the general public are kindly enjoined to abide by these rules.
The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two (2) decimal places.
Limits on overbought positions shall be zero. Re-introduction of order-based two-way quotes, with bid-ask spread of A1. Al transactions shall be cleared by a Central Counter Party (CCP). Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades. The operational hours of trades shall be from 9am to 4pm, Nigeria time.