Cbn new forex rules

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

On April 21, 2021, the CBN introduced new guidelines for the foreign exchange market in Nigeria. The new rules aim to improve the management of the country's foreign exchange resources, promote transparency, and enhance the overall stability of the economy.

Here are some key highlights of the new forex rules:

  1. New FX Window: The CBN introduced a new FX window, known as the "Invisible FX Window," which allows for the sale of foreign exchange to authorized dealers at a rate that is closer to the interbank rate.
  2. Interbank Rate: The CBN set a new interbank rate, which is the rate at which authorized dealers can buy and sell foreign exchange. The rate is determined by the market forces of supply and demand.
  3. Authorized Dealers: The CBN listed 15 authorized dealers that are allowed to participate in the new FX window. These dealers are required to meet certain criteria, including having a minimum capital base of N50 billion.
  4. FX Allocation: The CBN introduced a new FX allocation system, which allocates foreign exchange to authorized dealers based on their demand and the availability of foreign exchange.
  5. FX Sales: The CBN set a new limit on the amount of foreign exchange that can be sold to individuals and businesses. The limit is N20,000 per person per day.
  6. FX Repatriation: The CBN introduced a new repatriation policy, which requires that all foreign exchange earned by Nigerian companies be repatriated to Nigeria within a specified timeframe.
  7. FX Reporting: The CBN introduced new reporting requirements for authorized dealers, which include reporting all FX transactions to the CBN on a daily basis.
  8. Penalties: The CBN introduced penalties for non-compliance with the new FX rules, including fines and imprisonment.

The new forex rules aim to promote transparency, improve the management of foreign exchange resources, and enhance the overall stability of the economy. However, the rules have also been criticized for being overly restrictive and potentially stifling economic growth.

It's worth noting that the CBN has also introduced other measures to improve the management of foreign exchange in Nigeria, including the introduction of a new FX management system and the establishment of a FX monitoring committee.