Nigeria Unveils New Forex Policy, Removes Controls On Naira

The Central Bank of Nigeria, CBN, on Wednesday formally unveiled the much-awaited flexible foreign exchange policy, saying it would launch a forex interbank trading window that will be purely market-driven.

The new policy effectively removes controls on the naira, and is expected to increase dollar supply and help the nation’s weak economy.

Making the announcement in Abuja on Wednesday, CBN governor, Godwin Emefiele, said the bank will operate a single trading window, to be launched on Monday.

The new window will have about 10 primary traders, to be appointed by the bank. Each trader will have a minimum volume of $10 million, he said.

He said the new mechanism would enable businesses plan their portfolio effectively without fear of losses as a result fluctuation in exchange rates.

“We are optimistic that the steps we have taken today will further deepen the market and help get foreign exchange into the market. I will say to Nigerians be calm, there is no need to worry, everything is well,” Mr. Emefiele said.