₦airaland Forum

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The Central Bank of Nigeria (CBN) believes it is now time to restore automatic adjustment of FX rate. 

Details of the new FX policy will be released shortly, however below are key highlights of the new policy:‎
 
1.       Market to operate as a single market structure through Interbank and Autonomous FX market
2.       Exchange rate to be Market driven using Reuters and FMDQ order matching system
3.       CBN will intervene on a need basis
4.       FX primary dealers will be introduced to deal directly with CBN for large trader sizes on 2way quote basis
5.       Primary dealers will operate with other FX dealers in the market in line with guidelines to be introduced
6.       No predetermined spread will be introduced for FX deals with Primary dealers by CBN
7.       41 Items shall remain inadmissible
8.       To improve liquidity, CBN might offer long tenured FX forwards for tenors between 6 and 9 months
9.       Sale of FX to end users will be with no predetermined spreads.
10.   CBN to introduce OTC NGN settled Futures.
11.   OTC FX Futures shall be in non-standardized amounts and different fixed tenors so as to have bespoke maturity dates
12.   Proceeds of FX for ITT shall be purchased at the daily interbank rates
13.   Export proceeds unfettered access to be sold interbank
14.   Guidelines for selection and operation of primary dealers to be released shortly.
15.   Primary dealers selected will be communicated on 17 Jun 2016
16.   Interbank FX trading will start 20 Jun 2016
17.   Rate and tenor for OTC FX settled features will be announced on 27 June 2016.
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More details to follow .......

Can someone break this down? This English is too much fa

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