Abuja, Feb. 9. 2024 -The Central Bank of Nigeria (CBN) has adopted a more liberal approach to foreign exchange management.
It has, consequently, removed the cap on foreign exchange transactions.
The apex bank gave a directive to this effect through a circular FMD/DIR/PUB/CIR/001/012 signed by Duke, Omolara Omotunde, the Director, Financial Markets Department and addressed to “All Authorized Dealers”.
“The Bank hereby discontinues any cap on the spread on interbank foreign exchange transactions and restrictions on the sale of interbank proceeds.”
“Authorized dealers are to continue to conduct their foreign exchange transactions on a “Willing Buyer and Willing Seller” basis.
“In addition, they are to strictly adhere to high ethical standards in their dealings in the foreign exchange markets. This includes but not limited to adopting appropriate price disclosures and transparency for transactions.”
The CBN said it would continue to monitor the market and make adjustments as required.
The step is intended to enhance transparency, efficiency, and flexibility in the foreign exchange market, ultimately benefiting individuals and businesses.
Previously, the CBN imposed limits on the difference between buying and selling prices for foreign exchange, known as the spread. (GBN)
