CBN restates commitment to boost liquidity in forex market

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The Central Bank of Nigeria (CBN) Thursday pledged to continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates on a Willing Buyer – Willing Seller principle.

The CBN restate that the prevailing Foreign Exchange (FX) rates should be referenced

from platforms such as the CBN website, FMDQ, and other recognised or appointed

trading systems to promote price discovery, transparency, and credibility in the FX rates.

A statement by the Director Corporate Communication, Dr. Isa AbdulMumin said “As part of its responsibility to ensure price stability, the apex bank will boost liquidity in the

Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity

improves, these CBN interventions will gradually decrease.

“Importers of all the 43 items previously restricted by the 2015 Circular referenced

TED/FEM/FPC/GEN/01/010 and its addendums are now allowed to purchase foreign

exchange in the Nigerian Foreign Exchange Market.

“The CBN is committed to accelerating efforts to clear the FX backlog with existing

participants and will continue dialogue with stakeholders to address the issue.

“The CBN has set as one of its goals the attainment of a single FX market. Consultation

is ongoing with market participants to achieve this goal. Participants and the general public are to be guided by the above,” the statement said.