. Promises stable market regime
Henceforth, 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 (FOREX) in the Nigerian Foreign Exchange Market.
The Central Bank of Nigeria (CBN), which made the announcement yesterday, said in a statement that the move is part of measures to boost liquidity in the FOREX market.
This is contained in a statement titled: “CBN Restates Commitment To Boost Liquidity in FOREX Market,” and signed by its Director, Corporate Communications, Dr. Isa AbdulMumin.
The statement continues: “The CBN 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.
“The 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.”
It assured that “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,” it added.
The apex bank also expressed commitment “to accelerating efforts to clear the FX backlog with existing participants and will continue dialogue with stakeholders to address the issue.”
It noted that the main goal for its decisions is “the attainment of a single FX market.”
It further said consultations are still ongoing with market participants to achieve this goal and urged participants to be guided by them.
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.