Summary of the Press Conference held by the Governor of the Central Bank on the Flexible Exchange Rate Policy held June 15, 2016

1. The Market will operate as single market through the interbank
2. The FX Rate will be purely market-driven
3. CBN will participate through periodic interventions
4. FX primary dealers will be registered to deal directly with the CBN for large deal sizes.

5. FX primary dealers will deal with other authorised dealers
6. There will be no more spread restrictions
7. The 41 items classified for not valid for FX are still not admissible in FX interbank market
8. CBN may offer long-tenored FX forwards

9. Selling of FX forwards must be trade backed with no pre-determined spreads
10. Over the Counter FX futures will be introduced. The OTC FX futures are bespoke and volumes could be non-standard
11. Non-oil exporters are now allowed unfettered access to export proceeds via the interbank market

Timelines
12. Guidelines of the general FX market will be released immediately
13. Guidelines for FX primary dealers will be released immediately
14. FX primary dealers will be appointed and notified by June 17, 2016
15. Interbank FX trading under the new guidelines will begin on June 20, 2016

Additional details will be released as soon they are published by the Central Bank.



http://www.herald.ng/breaking-cbn-releases-new-forex-market-guidelines/

Even me that I have certificate I dont understand, how much less Bubu

Me i go school small, and wetin i dey see na no change at all, except dat one wen dem don reduce dem tight tight hand. Apart from dat one, na APC business as usual.

Summary please...

In short, our currency has been tactically devalued...

Can someone explain to us in a layman's language?

Jengem:
Even me that I have certificate I dont understand, how much less Bubu

lol..we are not talking of Birth certificate oga.

What do these mean?

Na this rubbish we dey wait for since yesterday?

Upon all, what is the new exchange rate....

'cause i don't think i got all this OLX, FX, OLC whatever language...

Okay, what it means is that nobody is fixing anything... It's now business driven by demand and supply.

Check out List Of 41 Imported Items CBN Ban From Forex

this is naira floating......don't even ask me to explain cos I don't understand.....lol
seems many people that understands economics are cool with it.

So how much is the exchange rate now?

Technically confusing......waiting for my importer brother in Alaba to break it down for me at night,after France finish dealing with Albania.

In summary CBN has ceased interference with exchange rate. Consequently the exchange rates will be based strictly on demand and availability. I don't see Naira losing much value as it will remain within the 300 to 400 vicinity against the US Dollar.

I am waiting for that China Currency deal to manifest

Jengem:
Even me that I have certificate I dont understand, how much less Bubu

I doubt you have any credible certificate.

Some certificates are not worth the piece of paper they're printed on. Yours surely is such.

And get over the election loss trauma. The loss is irreversible.

Let someone in the house kindly break this grammar down for people like us dat do not have #certificate and uses #NEPA bill, to decode the message from cbn.

doyinisaac:
**nonsense...is this a joke or what??.is this the flexible exchange policy that they are talking about??this is nothing new so why waste our time thinking they want to bring a better exchange policy....smh...

Did you read "the FX rate will be purely "market-driven" or not?

Na wa for illiterates pretending to know something.

DropShot:

Did you read "the FX rate will be purely "market-driven" or not?

Na wa for illiterates pretending to know something.

Bros, you wen go school small, abeg help us broke this message into small small grammar, make we wen dey use #NEPA cert fit understand!

Good development

joke

How to earn the FV is the deal.

Seems not to be making sense, we already know all this.

Warris all dis mehn?

The man that doesn't know what subsidy is and yet removed it has done it again! Thought the dullardic element claim he have clue on what naira devaluation is all about?

Jengem:
Even me that I have certificate I dont understand, how much less Bubu

Must you display how you are? You should be ashamed that you have you certificate and you could not understand. Seek counsel and stop insulting people that did not know if you are in existence.

Jengem:
Even me that I have certificate I dont understand, how much less Bubu

Must you display how low you are? You should be ashamed that you have you certificate and you could not understand. Seek counsel and stop insulting people that did not know if you are in existence.

doyinisaac:
First of all you are pathetically and senselessly rude...now idiot let me school you,the "market driven " force was already in place after the last cbn announcement before now,so what is new about this??fool....what came about the parallel rate in the first place??was the rate created by itself without demand and supply??according to your myopic dumb brain you assume Anyone that is against CBN policy or criticizing CBN policy is against buhari.....no wonder they call u people zombies..

Mynd44 Lalasticlala Seun, this is clear violation of rule 2. Please do justice.

doyinisaac:
First of all you are pathetically and senselessly rude...now idiot let me school you,the "market driven " force was already in place after the last cbn announcement before now,so what is new about this??fool....what came about the parallel rate in the first place??was the rate created by itself without demand and supply??

What is simply new is that they won't be anything like black market or parallel market and cbn official rate.
The cbn official rate was 199 naira to a dollar which is fixed and not market determine by supply and demand. what that meant is that some get to by dollars at 199 while does who can't buy it 350 from BDC. With this new policy, no more such, one single exchange rate, one single market,

Parallel market is as a result of the fixed rate policy.
This floating policy is way different from the existing policy we have been using.

doyinisaac:
First of all you are pathetically and senselessly rude...now idiot let me school you,the "market driven " force was already in place after the last cbn announcement before now,so what is new about this??fool....what came about the parallel rate in the first place??was the rate created by itself without demand and supply??according to your myopic dumb brain you assume Anyone that is against CBN policy or criticizing CBN policy is against buhari.....no wonder they call u people zombies..

Mynd44 Lalasticlala Seun, please do justice. Rule 2 broken.