CBN To Boost Liquidity In Foreign Exchange Market

Edited By Umbwanko Baba

The Central Bank of Nigeria, CBN says it will continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates on a Willing Buyer – Willing Seller principle.

This is contained in a statement by the CBN Director, Corporate Communications, Dr Isa Abdulmumin in Abuja.

The statement reiterates that the prevailing Foreign Exchange rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in foreign exchange rates.

It explains that as part of its responsibility to ensure price stability, the apex bank will boost liquidity in the nation’s Foreign Exchange Market by carrying out interventions at intervals.

The statement however notes that as market liquidity improves, these CBN interventions will gradually decrease.

It stresses that the CBN is committed to accelerating efforts to clear the foreign exchange backlog, therefore will continue dialogue with stakeholders to address the issue.

It also says consultation is ongoing with market participants to achieve the goal of attaining a single Foreign Exchange Market.

The statement adds that Importers of all the 43 items previously restricted by the 2015 Circular and its addendums are now allowed access to Foreign Exchange in the Market.