Cbn new forex policy

You're referring to the new foreign exchange (forex) policy introduced by the Central Bank of Nigeria (CBN)!

On June 20, 2020, the CBN announced a new forex policy aimed at addressing the challenges faced by the Nigerian economy, particularly in the foreign exchange market. The policy is designed to promote economic growth, improve the balance of payments, and enhance the stability of the naira.

Here are the key highlights of the new forex policy:

  1. Unification of Exchange Rates: The CBN has unified the exchange rates for all foreign exchange transactions, eliminating the multiple exchange rates that existed previously. The new rate is N360 per dollar, which is the rate used for all transactions, including imports, exports, and other foreign exchange transactions.
  2. Increased Allocation to Manufacturers: The CBN has increased the allocation of foreign exchange to manufacturers and exporters, with a view to promoting local production and reducing reliance on imports. The allocation is now based on a formula that takes into account the level of production, exports, and other factors.
  3. Improved Allocation to Small and Medium-Sized Enterprises (SMEs): The CBN has also increased the allocation of foreign exchange to SMEs, which are critical to the growth of the Nigerian economy. The allocation is now based on a formula that takes into account the level of production, exports, and other factors.
  4. Increased Transparency and Accountability: The CBN has introduced measures to improve transparency and accountability in the foreign exchange market. This includes the publication of daily foreign exchange rates, the introduction of a foreign exchange management system, and the establishment of a foreign exchange monitoring committee.
  5. Increased Penalties for Forex Violations: The CBN has increased the penalties for foreign exchange violations, including the imposition of fines and imprisonment for individuals and companies that engage in illegal foreign exchange activities.
  6. Increased Support for Agriculture: The CBN has increased support for agriculture, including the allocation of foreign exchange to farmers and the introduction of a new agricultural credit scheme.
  7. Increased Support for Manufacturing: The CBN has also increased support for manufacturing, including the allocation of foreign exchange to manufacturers and the introduction of a new manufacturing credit scheme.

Overall, the new forex policy is designed to promote economic growth, improve the balance of payments, and enhance the stability of the naira. It is expected to have a positive impact on the Nigerian economy, particularly in the areas of manufacturing, agriculture, and small and medium-sized enterprises.