Cbns new forex policy

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

On April 21, 2022, the CBN introduced a new forex policy aimed at addressing the challenges in the foreign exchange market and promoting economic growth. Here are the key highlights:

1. Multiple Exchange Rate Regime: The CBN introduced a multiple exchange rate regime, which allows for different exchange rates for different transactions. This is to reflect the different market conditions and to encourage the use of the official exchange rate for legitimate transactions.

2. Official Exchange Rate: The official exchange rate is now N410 per dollar, which is a slight devaluation from the previous rate of N360 per dollar.

3. Interbank Market: The CBN established an interbank market where banks can trade foreign currencies among themselves. This is expected to increase liquidity and reduce the premium on the official exchange rate.

4. Wholesale Market: The CBN also established a wholesale market where authorized dealers can buy and sell foreign currencies at a rate that is closer to the official exchange rate.

5. Retail Market: The retail market, which is open to individuals and small businesses, will continue to operate at a rate that is slightly higher than the official exchange rate.

6. Cash Withdrawal Limit: To curb the use of foreign currencies for cash withdrawals, the CBN introduced a limit of $5,000 per day for cash withdrawals by individuals and $10,000 per day for corporate entities.

7. Repatriation of Foreign Exchange Earnings: The CBN introduced a new repatriation policy for foreign exchange earnings, which requires that 60% of such earnings be repatriated within 60 days of receipt.

8. Increased Transparency: The CBN has committed to increasing transparency in the foreign exchange market by publishing daily exchange rates and providing regular updates on foreign exchange transactions.

The new forex policy is expected to improve the efficiency of the foreign exchange market, reduce the premium on the official exchange rate, and promote economic growth. However, it remains to be seen how the policy will be implemented and its impact on the economy.