• Monday, December 04, 2023
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CBN merges FX segments into I&E window

CBN declares no transactions on accounts without BVN, NIN from March 2024

The Central Bank of Nigeria (CBN) on Wednesday collapsed all segments of foreign exchange markets into the Investors and Exporters (I&E) forex window.

The apex bank has also stopped the RT200 programme and the naira4dollar remittance scheme with effect from June 30, 2023.

Read also: Naira closes at N664/$ as Nigeria attempts fx unification

This was contained in a circular signed by Angela Sere-Ejembi, director of financial markets.

According to the circular, applications for medicals, school fees, business travel allowance and personal travel allowance BTA/PTA, and SMEs would continue to be processed through deposit money banks.

The CBN has also re-introduced the “Willing Buyer, Willing Seller” model at the I&E window, saying that operations in this window will 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, the circular stated.

“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 decimal places,” the circular said.

The circular said proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures. Limits on overbought positions shall be zero.

The CBN re-introduced order-based two-way quotes, with bid-ask spread of 411. It said all transactions shall be cleared by a Central Counter Party (CCP).

As seen in the circular, the CBN has reintroduced Order Book to ensure transparency of orders and seamless execution of trades.

The operational hours of trades shall be from 9am to 4pm, Nigeria time, the CBN said.

“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,” Sere-Ejembi said in the circular.