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CBN and banks

CBN’s new forex regulation takes effect from tomorrow, August 1

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Regulatory provisions of the revised Foreign Exchange Manual shall take effect from August 1, 2018, the Central Bank of Nigeria (CBN) has said.

A circular to made available to all authorized dealer banks and the public and signed by the Director, Trade and Exchange at the CBN, F.O Okonji said the bank noted that the changes made in the manual were aimed at streaming documentation requirements, enhancement of transparency of transactions and engendering compliance by stakeholders.

Key part of the guideline stipulates that CBN shall operate a single market structure through the autonomous/inter-bank market, including the Inter-Bank Foreign Exchange Market with the CBN participating in the FX market through interventions directly in the inter-bank market or through dynamic “Secondary Market Intervention Mechanisms”.

Furthermore, to promote the global competitiveness of the market, CBN said the inter-bank FX market will be supported by the introduction of additional risk management products offered by the CBN and Authorised Dealers to further deepen the FX market, boost liquidity and promote financial security in the market. This Foreign Exchange Manual is compiled and issued by the Central Bank of Nigeria (CBN) pursuant to the powers conferred on it by the Foreign Exchange (Monitoring & Miscellaneous Provisions) Act of 1995.

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