JUST IN: CBN to intervene in foreign exchange market, lifts ban on 43 items

The Central Bank of Nigeria (CBN) said Thursday that it will boost liquidity in the foreign exchange market by intervening from time to time.

The apex bank, which made the announcement in a statement said that as market liquidity improves, the interventions will “gradually decrease”.

It also announced the lifting of the ban on 43 items previously restricted from purchasing forex.

The CBN said it will be championing the ‘Willing Buyer – Willing Seller’ principle, emphasizing its commitment to a market-driven exchange rate system.

The apex bank also said to avoid potential misinformation, participants are advised to reference foreign exchange rates only from official platforms such as the CBN website, FMDQ, and other recognized trading systems. Important to add that the disparity between the official and parallel market rates stands at a whopping 25%.

Addressing the longstanding FX backlog issue, the CBN pledged to intensify efforts for its clearance and further engage with stakeholders to streamline solutions.

On broader vision, the bank also indicated its pursuit of a unified foreign exchange market, with consultations already underway with market players.