Cbn new forexpolicy 2017

You're referring to the Central Bank of Nigeria's (CBN) new foreign exchange (forex) policy introduced in 2017.

The CBN introduced the new forex policy in June 2017, with the aim of addressing the challenges faced by the country's foreign exchange market. The policy was designed to promote stability, transparency, and efficiency in the foreign exchange market.

Some of the key features of the new forex policy include:

  1. Unification of Exchange Rates: The CBN unified the exchange rates for all foreign exchange transactions, eliminating the multiple exchange rates that existed previously. The unified exchange rate was set at N305 per dollar.
  2. Introduction of the Investors and Exporters (I&E) Window: The CBN introduced the I&E window, which allows authorized dealers to buy and sell foreign exchange at the market-determined rate. This window is designed to promote transparency and efficiency in the foreign exchange market.
  3. Increased Allocation to Wholesale Market: The CBN increased the allocation of foreign exchange to the wholesale market, which is designed to meet the needs of large-scale importers.
  4. Introduction of the Retail Dutch Auction System: The CBN introduced the retail Dutch auction system, which allows individuals and small businesses to access foreign exchange at the market-determined rate.
  5. Increased Monitoring and Regulation: The CBN increased its monitoring and regulation of foreign exchange transactions to prevent illegal activities and ensure that foreign exchange is used for legitimate purposes.

The new forex policy has had a positive impact on the Nigerian economy, including:

  1. Stabilization of the Exchange Rate: The policy has helped to stabilize the exchange rate, reducing the volatility that existed previously.
  2. Increased Foreign Exchange Supply: The policy has increased the supply of foreign exchange in the market, making it easier for businesses and individuals to access foreign exchange.
  3. Improved Transparency and Efficiency: The policy has improved transparency and efficiency in the foreign exchange market, making it easier for businesses and individuals to access foreign exchange.
  4. Increased Investment: The policy has attracted more foreign investment to Nigeria, as investors are now more confident in the country's foreign exchange market.

Overall, the new forex policy has helped to promote stability, transparency, and efficiency in Nigeria's foreign exchange market, and has contributed to the country's economic growth and development.