The Central Bank of Nigeria (CBN) has abolished the spread of Foreign Exchange Transactions, as announced in a statement from the CBN Financial Markets Department, signed by Duke Omolara Omotunde.
The statement, titled ‘Removal of the Spread on Foreign Exchange Transactions,’ dated February 8, 2024, was distributed to all authorized dealers.
It outlined that a key objective of the ongoing foreign exchange market reforms by the CBN is to promote a market-based price discovery system.
ALSO READ: CBN governor assures Nigeria’s inflation rate will drop to 21% in 2024
ALSO READ: Forex: Expert reveals only way to make ₦aira rise
Accordingly, the CBN discontinues any cap on the spread of interbank foreign exchange transactions and removes restrictions on the sale of interbank proceeds. Authorized Dealers are instructed to conduct their foreign exchange transactions based on a ‘Willing Buyer and Willing Seller’ basis.
Furthermore, they are urged to strictly adhere to high ethical standards in their dealings in the foreign exchange markets. This includes implementing appropriate price disclosures and transparency for transactions. It’s emphasized that all executed transactions must be promptly recorded on the relevant treasury systems and reported to market authorities as stipulated.
