16 June 2016
CBN Governor, Godwin Emefiele on Wednesday announced that a market driven forex regime aimed at increasing supply of foreign currency in the country will take effect from the 20th of June 2016.
The CBN Governor disclosed that the detailed guidelines of the policy will be made public later, adding that the regime would have between eight and ten primary traders handling “minimum volumes of $10 million.”
In the statement, Emefiele mentioned: “We now believe that the time is right to restore the automatic adjustment mechanisms of foreign exchange rate with the reintroduction of the flexible inter-bank exchange rate market”.
He added that “the market shall operate as a single market structure through the inter-bank and autonomous window”. He however stated that “the foreign exchange rate will be purely market driven.”
He explained further that foreign transaction in market with the new regime will ease demand on spot trading, reduce volatility and give businesses surety.
He went on to assure of opportunity for inter-bank trading to aid economic growth and encourage more investments.
According to the CBN Governor, this policy is supported and backed by President Muhammad Buhari.