CBN OPENS ANOTHER FX WINDOW

From next Monday, April 24, investors and exporters of goods in Nigeria will have their own dedicated window through which to access foreign exchange and even sell.

According to a circular from the Director Financial Markets, Central Bank of Nigeria, Dr Alvan Ikoku, the apex decided to open this new window for more timely execution and settlement of eligible transactions of investors and exporters.

Thus, explained, Dr Ikoku, the transactions to be settled through this window are loan repayment, interest payment, dividend remittances, capital repartriation; management services fees and Consultancy fees.

Others are software subscription fees, technology transfer agreement obligations; personal home remittances and any other such transactions except airline ticket sales remittance.

Bills for collection are also eligible for the new window.

The CBN anticipates supply of forex for the window to come mainly from portfolio investors and exporters; authorised dealers and other parties with forex to sell or change into Naira.

Meanwhile, the CBN reserves the right to intervene in the window as a participant to promote liquidity and professional market conduct.

Trade shall be by telephone and participants are advised to record all transactions conversations, ensuring the output is audible.

The window's corodinated rates shall be published twice daily as in 9am for opening and 4pm for closing on the website of FMDQ OTC: www.fmdqotc.com and dealers are to report on daily transactions to the CBN.

However, effective transaction rates shall be determjned between authorised dealers and counter parties (buying or selling).

The new window compliments other windows opened in recent past by the CBN with direct funding or just intervention for purchases for BTAs,medical bills and School fees; for weekly sales to Bureaux de change and to make it easier for small and medium scale enterprises to source forex.

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