CBN Unveils New Forex Guidelines, Confines Exchange Rate to Market Forces

• Appoints primary forex dealers, says ban on 41 items remains
• Backlog of matured letters of credit to be cleared
• Trading under new guideline to begin Monday

James Emejo in Abuja

The Central Bank of Nigeria (CBN) on Wednesday unveiled the much-anticipated flexible foreign exchange framework, allowing the exchange rate of the naira to be determined by market forces of demand and supply, although the apex bank would step in whenever appropriate.

The release came after weeks of consultations with stakeholders including the banks, on the need for a more flexible forex market to, among other things, reduce pressure on the local currency and incentivize foreign investors.

Details later