In an apparent move to improve liquidity and stability in the Nigerian Foreign Exchange market and attract foreign investors into the economy, the Central Bank of Nigeria (CBN) has announced the collapse of all windows into the Investors & Exporters (I&E) window.
The abolishment of the market segmentation was announced in a statement by the Director of Financial Markets, Angela Sere-Ejembi on Wednesday, June 14, 2023.
CBN said, following the decision, applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
The apex bank also announced the cessation of the RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023.
On the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window, CBN said, “operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window”.
It said, ‘the operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two (2) decimal places.
“Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures. Limits on overbought positions shall be zero.
“Re-introduction of order-based two-way quotes, with bid-ask spread of N11. All transactions shall be cleared by a Central Counter Party (CCP).
“Reintroduction of Order Book to ensure transparency of orders and seamless execution of trades.
“The operational hours of trades shall be from 9 am to 4 pm, Nigeria time.
“Cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, with effect from 30 June 2023. Further guidance on these matters shall be communicated in due course.
“All market participants and the general public are kindly enjoined to abide by these rules”, CBN said.
