CBN Reaffirms Commitment to Boosting Liquidity in Forex Market

By Linda Ike

The Central Bank of Nigeria (CBN) has assured that the Apex bank will continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market.

According to a statement by the Director, Corporate Communications of CBN, Isa Abdulmumin, on Wednesday, this will ensure that market forces determine exchange rates on a Willing Buyer-Willing Seller principle.

The apex bank reiterated that the prevailing foreign exchange (FX) rates should be referenced from platforms such as the website, FMDQ ,and other recognized or appointed trading systems to promote price discovery, transparency, and credibility integrates.

It also stated that as part of its responsibility to ensure processability, then will post liquidity in the Nigerian Foreign Exchange Market by interventions from time to time, stating that as market liquidity
improves, these CB interventions will graduate crease.

It further stated that 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 food exchange market.

CBN restated its commitment to accelerating efforts to clear the FX backlog with existing participants and will continue dialogue with stakeholders to address the issue.

It also disclosed that CBN has set as one of its goals the attainment of a single FX market even as consultation is ongoing with market partner pants to achieve this goal.