The Central Bank of Nigeria, CBN, yesterday formally unveiled the flexible forex policy, saying it would launch a forex interbank trading window that will be purely market-driven. The new policy effectively removes controls on the naira, and is expected to increase dollar supply and help Nigeria’s weak economy.
CBN governor, Godwin Emefiele, said the bank will operate a single trading window, to be launched on Monday. The new window will have about 10 primary traders, to be appointed by the bank, with each trader will have a minimum volume of $10m.
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The new mechanism would enable businesses plan their portfolio effectively without fear of losses as a result fluctuation in exchange rates.
He said: “We are optimistic that the steps we have taken today will further deepen the market and help get forex into the market. I will say to Nigerians be calm, there is no need to worry, everything is well.”
[…] the Central Bank of Nigeria (CBN) decision to let market forces drive the position of the naira, the interbank market has […]
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