Central Bank of Nigeria Denies Recent Rumors of New Forex Policy
VoiceofNigeria.org.ng – The Central Bank of Nigeria (CBN) has dismissed reports about the introduction of a new foreign exchange policy. This comes amid fluctuating exchange rates and changes to the country’s foreign exchange market.
Dispel The Myths
Recent rumors have been circulating regarding a new foreign exchange policy by the CBN. Addressing these speculations, the bank used its official platform to clear the air:
“We would like to bring to your attention that the attached images currently circulating on social media are from an old Press Release dated 20th February 2017 and should please be disregarded.”
Past Changes to the Forex Policy
VoiceofNigeria.org.ng previously reported in June 2023 that the CBN had implemented several strategic shifts in the foreign exchange market. Here’s a breakdown:
- End of Specific Schemes: The RT200 FX Programme and the Naira4Dollar scheme were both concluded at the end of June 2023.
- Support for SMEs and Travellers: The bank directed the provision of foreign exchange for BTA/PTA and SMEs through the Investors and Exporters (I&E) window.
Additional Forex Changes:
- The reintroduction of the “Willing Buyer, Willing Seller” model at the I&E Window.
- Bringing back the Order Book for transparency.
- Renewing order-based two-way quotes with a bid-ask spread of just N1.
- Establishment of a Central Counter Party (CCP) for transaction clearances.
- Setting boundaries on oversold FX positions.
- Determining rates for all government transactions using the average rate of the previous day’s I&E window activities.
Naira’s Response to Forex Changes
Nigeria’s currency, the naira, has demonstrated resilience and positivity amid these changes. Here are some notable figures:
- Official Market: On August 17, 2023, the naira exchanged for N740.67/$1, showing appreciation from the prior day’s N759.86/$1.
- P2P Window: The naira strengthened by N46, closing at N841/$1.
- Black Market: The currency traded favorably at N840/$1 per dollar.
Curbing Malpractices in Forex Trading
To promote transparency and deter fraudulent activities, the CBN is initiating a new step:
“No more tricks”: The CBN is set to launch a dollar to naira price verification portal by the end of August 2023.
This portal aims to revolutionize the foreign exchange market by putting a stop to any malpractices.
In conclusion, while the CBN continues its proactive approach towards stabilizing the country’s foreign exchange market, it is essential for Nigerians to rely on official sources for any policy-related news.