CBN orders authorized deals to remove cap on foreign exchange transactions
The Central Bank of Nigeria (CBN) on Friday ordered all authorized deals to remove the cap on foreign exchange transactions.
The Director, Financial Markets Department, CBN, Duke Omotunde in a circular titled, “Removal of the spread on foreign exchange transactions”, said, “A key objective of the going foreign exchange market reforms by the CBN is to promote a market-based price discover system.
“Consequently, the Bank here discontinue any cap on the spread on interbank foreign exchange transactions and restrictions on the sales of interbank proceeds.”
According to her, 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 disclosure and transparency for transactions.
Please note that all executed transactions to be recorded immediately on the relevant treasury systems and reported to market authorities as stipulated,” the circular added.
