The Central Bank of Nigeria (CBN) has reaffirmed its dedication to promoting professionalism and orderliness in the Nigerian Foreign Exchange Market.
In a statement signed Isa AbdulMumin, Director of Corporate Communications, says the Apex bank will ensure the exchange rates are determined by market forces through the Willing Buyer – Willing Seller principle.
To enhance transparency and credibility in FX rates, the CBN emphasizes that FX rates should be referenced from reliable platforms like the CBN website, FMDQ, and other recognized trading systems. This move is aimed at facilitating better price discovery and transparency.
In its quest to maintain price stability, the CBN will proactively increase liquidity in the Nigerian Foreign Exchange Market through periodic interventions. These interventions are expected to decrease gradually as market liquidity improves.
The statement maintains that importers are now permitted to purchase foreign exchange for all 43 items previously restricted by the 2015 Circular. This change is expected to have a positive impact on the Nigerian economy.
The CBN has also expressed its commitment to resolving the FX backlog, actively engaging with existing participants and stakeholders to address this issue. Additionally, they are working toward the establishment of a single FX market, and consultations with market participants are ongoing to achieve this objective.
Furthermore, the CBN is now taking substantial steps to create a more robust and transparent forex market in Nigeria. Market participants and the general public are advised to adhere to the guidelines provided by the CBN.