Further Liberalization of the Inter-bank Foreign Exchange Market

The CBN has introduced a special window called the Investors and Exporters Forex Window (the “Window”) for investors, exporters and end-users to boost liquidity in the Nigerian foreign exchange market and ensure timely execution and settlement for eligible transactions. Eligible transactions include: (i) invisible transactions (excluding international airlines ticket sales remittances); (ii) bills for collection; and (iii) any other trade-related payment obligations at the instance of a bank customer.

Henceforth, (a) Authorised Dealers (“ADs”) can effectively effect a transfer of excess foreign currency to other ADs without CBN’s prior approval, (b) inter-bank transactions are subject to a maximum spread of N1.00, (c) funds purchased by an AD from another AD in the inter-bank market, shall only be sold to the AD’s customers for permitted/eligible transactions, (d) ADs can only exceed their Foreign Currency Trading Position Limit with CBN’s approval, (e) CBN can intervene either as a buyer or a seller in the inter-bank market, and (f) ADs must give the details of all inter-bank purchases and/or sales through an online portal to the CBN by 4.00pm daily.