The apex bank made this known in a statement issued by its Financial Markets Department, signed by Duke Omolara Omotunde.
The Central Bank of Nigeria (CBN), has announced the removal of the spread on interbank Foreign Exchange Transactions.
The apex bank made this known in a statement issued by its Financial Markets Department, signed by Duke Omolara Omotunde.
The CBN in the statement captioned “Removal of the Spread on Foreign Exchange Transactions” and sent to all authorised dealers said that a key objective of the ongoing foreign exchange market reforms by the bank is to promote a market-based price discovery system.
Nigeria’s apex bank stated that “Consequently, the Bank hereby discontinues any cap on the spread of interbank foreign exchange transactions and restrictions on the sale of interbank proceeds.
“Authorised Dealers are to continue to conduct their foreign exchange transactions on a ‘Willing Buyer and Willing Seller’ basis.
“In addition, they are to strictly adhere to high ethical standards in their dealings in the foreign exchange markets.
“This includes but not limited to adopting appropriate price disclosures and transparency for transactions. Please note that all executed transactions are to be recorded immediately on the relevant treasUry systems and reported to market authorities as stipulated.”