Abuja - The Central Bank of Nigeria (CBN) on Wednesday released new foreign exchange guidelines .
The new guidelines according to the CBN Governor, Godwin Emefile was a response to the sustained pressure on the naira in the foreign exchange market.
Emefile, who addressed a press conference in Abuja said the market will operate as single market through the interbank.
He said the CBN will only participate through periodic interventions.
Also read: Nigeria's central bank agrees to flexible forex policy
He sated that FX primary dealers will be registered to deal directly with the CBN for large deal sizes.
Other guidelines listed by the CBN governor include:
- The FX Rate will be purely market-driven
- FX primary dealers will deal with other authorised dealers
- There will be no more spread restrictions
- The 41 items classified for not valid for FX are still not admissible in FX interbank market
- CBN may offer long-tenored FX forwards
- Selling of FX forwards must be trade backed with no pre-determined spreads
- Over the Counter 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
The new guidelines come into effect on June 20.
- News 24