CBN Restates Commitment to Single FX Market
The Central Bank of Nigeria (CBN) has restated its commitment to boost liquidity in forex Market.
This was contained in a report signed by the CBN Director, Corporate Communications, Isa AbdulMumin on Thursday, that the apex bank will continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates on a Willing Buyer – Willing Seller principle.
CBN reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates.
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“As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease.
The report in part read, “Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEM/FPC/GEN/01/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market”.
It further assured it’s commitment to accelerating efforts to clear the FX backlog with existing participants and will continue dialogue with stakeholders to address the issue.
While urging participants and the general public to ensure compliance of the above, the apex bank assured that one of its goals is the attainment of a single FX market. “Consultation is ongoing with market participants to achieve this goal”, it added.