Admin l Wednesday, June 14, 2023
LAGOS, Nigeria – The Central Bank of Nigeria, CBN has abolished segmentation of the foreign exchange rate of the Naira to other foreign currency.
In a circular entitled Operational Changes to the Foreign Exchange Market, the Central Bank of Nigeria, CBN said it has abolished segmentation, adding that all segments are now collapsed into investors and Exporters(I&E) widow.
“Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposits money banks.
“Reintroduction of the ‘Willing Buyer’, ‘Willing Seller’, model at the I&E Widow”, adding that operations shall be guided by extant circular on the establishment of the widow date 21, April 2017 and referenced FMD/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this widow.
The statement added that the operational rate for all government related transactions shall be the weighted average of the preceding day’s executed transaction at the I&E Window, circulated to the two decimal places.
“Prosecution of trading limits on oversold FX positions with permission to hedge short position with OTC futures. Limits on overbought positions shall be zero”, adding that operational hours of trade shall be from 9am to 4pm Nigerian time.
