Cbn moves to stabilize forex

You're referring to the Central Bank of Nigeria (CBN) taking steps to stabilize the foreign exchange (forex) market in Nigeria.

Recently, the CBN has taken several measures to address the challenges facing the forex market, including:

  1. Introduction of the Investors and Exporters (I&E) Window: In April 2017, the CBN introduced the I&E window, which allows authorized dealers to buy and sell foreign exchange at a market-determined rate. This has helped to increase transparency and liquidity in the market.
  2. Devaluation of the Naira: In June 2016, the CBN devalued the Naira by 48% to 305 per US dollar, which was aimed at addressing the country's foreign exchange crisis. The devaluation has helped to improve the competitiveness of Nigerian exports and attract foreign investment.
  3. Increased Supply of Foreign Exchange: The CBN has been working to increase the supply of foreign exchange in the market by injecting more dollars into the system. This has helped to reduce the demand for foreign exchange and stabilize the exchange rate.
  4. Implementation of the Cashless Policy: The CBN has implemented a cashless policy, which aims to reduce the use of cash in transactions and increase the use of electronic payment systems. This has helped to reduce the demand for foreign exchange and improve the efficiency of the payment system.
  5. Regulation of Foreign Exchange Transactions: The CBN has introduced regulations to improve the transparency and accountability of foreign exchange transactions. This includes the requirement for authorized dealers to report all foreign exchange transactions to the CBN.
  6. Increased Monitoring and Surveillance: The CBN has increased its monitoring and surveillance of the foreign exchange market to detect and prevent illegal activities, such as round-tripping and currency speculation.
  7. Collaboration with Other Regulators: The CBN has collaborated with other regulators, such as the Nigerian Stock Exchange and the Securities and Exchange Commission, to improve the overall efficiency and stability of the financial system.

These measures have helped to stabilize the forex market in Nigeria and improve the overall stability of the financial system. However, the CBN continues to monitor the market and take additional measures as necessary to ensure the stability and integrity of the foreign exchange market.