The CBN new policy

Summary of the Press Conference held by the Governor of the Central Bank on the Flexible Exchange Rate Policy – June 15, 2016
 
·         Market will operate as single market through the interbank
·         FX Rate will be purely market-driven
·         CBN will participate through periodic interventions
·         FX primary dealers will be registered to deal directly with the CBN for large deal sizes. FX primary dealers will deal with other authorised dealers
·         There will be no more spread restrictions
·         The 41 items classified for not valid for FX are still not admissible in FX interbank market
·         CBN may offer long-tenored FX forwards
·         Selling of FX forwards must be trade backed with no pre-determined spreads
·         OTC FX futures will be introduced. The OTC FX futures are bespoke and volumes could be non-standard
·         Non-oil exporters are now allowed unfettered access to export proceeds via the  interbank market
 
Timelines
 
·         Guidelines of the general FX market will be released immediately
·         Guidelines for FX primary dealers will be released immediately
·         FX primary dealers will be appointed and notified by June 17, 2016
·         Interbank FX trading under the new guidelines will begin on June 20, 2016
 
Additional details will be released as soon they are published by the Central Bank.

Posted by OKWUDIRI STRAIGHTMAN NWALI for PROUDSTARS.BLOGSPOT.COM.

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