The Central Bank of Nigeria has resolved to clear all the
backlog of forex demand of about 5 billion dollars in the country through spot
and forward settlements.
According to a statement released by the Acting Director,
Corporate Communications of the Central Bank, Mr Issac Okoroafor, the move is
to engender confidence, ensure credible price formation and sustain the
integrity of the Nigerian inter-bank FX market.
This comes as the new flexible forex trading begins on
Monday.
The Central Bank of Nigeria (CBN) had released the highlights
of the much awaited flexible foreign exchange market policy on Wednesday, June
15, weeks after the Monetary Policy Committee announced the introduction of the
policy.
After its meeting of May 24, the CBN said the policy would
allow the bank retain a small portion of foreign exchange for critical
transactions.
Key notes released stated that the market would operate as a
single market structure via the interbank market and authorised dealers and
that it would be purely an exchange rate market managed via Thompson Reuters
platform.
Part of the key notes is that the CBN would participate via
periodic intervention and would introduce primary dealers that deal with the
CBN on a two way quote basis.
The primary dealers are also expected to deal with other
players in the interbank market.
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