Cbn new policy on forex transfer

You're referring to the Central Bank of Nigeria's (CBN) new policy on foreign exchange (forex) transfer!

On April 21, 2022, the CBN introduced a new policy aimed at liberalizing the foreign exchange market and promoting transparency in forex transactions. The policy, which took effect on May 1, 2022, has several key features:

  1. Unified Exchange Rate: The CBN has introduced a unified exchange rate of N410 per dollar for all forex transactions, replacing the multiple exchange rates that existed previously.
  2. Increased Transparency: The policy requires all banks and other financial institutions to disclose their daily forex transactions, including the amount of foreign exchange sold, the exchange rate used, and the beneficiaries of the transactions.
  3. Increased Forex Allocation: The CBN has increased the allocation of foreign exchange to banks, from 15% to 30%, to enable them to meet the forex demands of their customers.
  4. Improved Forex Management: The policy requires banks to maintain a minimum foreign exchange reserve of 50% of their total foreign exchange transactions, to ensure that they have sufficient funds to meet their obligations.
  5. Increased Penalties for Forex Violations: The policy introduces stricter penalties for banks and other financial institutions that violate forex regulations, including fines, suspension of licenses, and even revocation of licenses.
  6. Increased Monitoring and Supervision: The CBN has increased its monitoring and supervision of banks and other financial institutions to ensure compliance with the new policy.
  7. Increased Use of Technology: The policy encourages the use of technology, such as online platforms and mobile apps, to facilitate forex transactions and improve transparency.

The objectives of the new policy are to:

  1. Promote transparency and accountability in forex transactions
  2. Increase the availability of foreign exchange for legitimate transactions
  3. Reduce the premium on the official exchange rate
  4. Improve the management of foreign exchange reserves
  5. Enhance the overall stability of the foreign exchange market

Overall, the new policy aims to promote a more liberalized and transparent foreign exchange market in Nigeria, which should benefit both individuals and businesses.