THE Central Bank of Nigeria (CBN) has abolished multiple Naira/Dollar exchange rates, saying all segments of the foreign exchange market are now collapsed into the I&E window.
The apex bank said applications for medicals, school fees, Business Travel Allowance/Personal Travel Allowance and SMEs would continue to be processed through the I&E window, what is seen by experts as capable of curbing corruption, increase Forex inflow and boost economic development.
The action is in tandem with the directive by President Bola Ahmed Tinubu, in his inaugural speech.
Under the suspended CBN Governor, Mr. Godwin Emefiele, whose tenure is being probed, the apex bank resisted pressures from the World Bank and the International Monetary Fund (IMF) to allow the naira to float and determine its real value, thereby eliminating corruption in the multiple exchange rates regime.
In the circular, the CBN also stated that the operational changes to the foreign exchange market include the re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window.
“Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017 and referenced FMD/DIR/CIR/GEN/08/007.
“All eligible transactions are permitted to access foreign exchange at this window.”
The circular stated that all operational rates for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two decimal places.
“Proscription of trading limits on oversold FX positions with permission to hedge short positions with OTC futures limits on overbought positions shall be zero.
“Re-introduction of order-based two-way quotes, with bid-ask spread of N1. All transactions shall be cleared by a Central Counter Party (CCP).
“Re-introduction of Order Book to ensure transparency of orders and seamless execution of trades.
“The operational hours of trades shall be from 9 am to 4 pm, Nigeria time,” it said.
In addition, there would be an end to the RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme from June 30, 2023.
