The Central Bank of Nigeria (CBN) has provided further guidance to Deposit Money Banks (DMBs) on the operational changes to the foreign exchange market announced on June 14, 2023.
This was made known in a press statement on June 18, 2023,
The statement followed an extraordinary Bankers’ Committee meeting held to discuss the implementation and implications of the policy changes for the banking public.
According to the CBN, the policy changes aim to promote transparency, liquidity, and price discovery in the FX market in order to improve FX supply, discourage speculation, enhance customer confidence and ensure overall stability in the FX market.
According to the CBN , all visible and invisible transactions (medicals, school fees, BTA/PTA, airline, and other remittances) are eligible for the Investors’ and Exporters’ (I & E) window.
He said that DMBs shall ensure expeditious processing of all eligible invisible transactions on behalf of their customers using the applicable rate at the I & E window.
The new guidelines also mean Nigerians can now make forex transfers from one domiciliary account to another even if it is in another bank, which was previously not possible as transfers were only permitted within the same bank.
Nigerians with domiciliary accounts can use their debit cards abroad without fear of restrictions.
The development is also likely going to improve liquidity in the forex market as this allows more people to deposit their forex into banks.
The CBN has assured the banking public that it remains committed to ensuring a stable and efficient FX market that meets the needs of all legitimate users.
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