The Central Bank of Nigeria (CBN) has finally released the guidelines of the new foreign exchange policy earlier announced on Wednesday.
Godwin Emefiele, the CBN governor, announced the new policy on Wednesday, releasing the naira to float according to the push and pull of the market forces.
TheCable had initially highlighted 11 things learnt from Emefiele’s speech, in anticipation of the full guidelines of the new policy, which would be effective from June 20, 2016.
“The market shall operate as a single market structure through the inter-bank/autonomous window; the Exchange Rate would be purely market driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book,” the CBN governor had said.
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“The CBN would participate in the Market through periodic interventions to either buy or sell FX as the need arises; to improve the dynamics of the market, we will introduce FX Primary Dealers (FXPD) who would be registered by the CBN to deal directly with the Bank for large trade sizes on a two-way quotes basis.
“These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines.”
The document, titled ‘Guidelines for primary dealership in foreign exchange products’, explains all that analysts, dealers, players in the industry and other concerned parties need to know.
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The CBN says it reserves the rights to change the operational guidelines stated in the document below “from time to time”.
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