Cardoso’s CBN Restates Commitment to Boost Liquidity in FX Market

The Central Bank of Nigeria (CBN), under Olayemi Cardoso, 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.

The CBN disclosed this in a statement by Director, Corporate Communications, Isa AbdulMumin PhD. The apex bank reiterated that the prevailing Foreign Exchange (FX) 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 the FX rates.

It added that “As part of its responsibility to ensure price stability, the CBN will boost liquidity in the
Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity
improves, these CBN interventions will gradually decrease.
“Importers of all the 43 items previously restricted by the 2015 Circular referenced
TED/FEM/FPC/GEN/01/010 and its addendums are now allowed to purchase foreign
exchange in the Nigerian Foreign Exchange Market.
“The CBN is committed to accelerating efforts to clear the FX backlog with existing
participants and will continue dialogue with stakeholders to address the issue.
“The CBN has set as one of its goals the attainment of a single FX market. Consultation
is ongoing with market participants to achieve this goal.”

It urged the “Participants and the general public are to be guided by the above.”