CBN to intervene in FX market, lifts ban on 43 items
Naira and Dollar notes

BY BUNMI ADULOJU

OCTOBER 12, 2023 5:13 PM

The Central Bank of Nigeria (CBN) says it will boost liquidity in the foreign exchange (FX) market by intervening “from time to time”.

The apex bank, in a statement issued on Thursday, said that as market liquidity improves, the interventions will “gradually decrease”.

The CBN also announced the lifting of the ban on 43 items previously restricted from accessing forex.

The decision comes amid high levels of volatility experienced in the FX market following the unification of all trading windows into the investors’ and exporters’ (I&E) window — the official FX market.

Advertisementhttps://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-4634537558011240&format=360×300&w=360&h=300&ptt=12&iu=3820811019&adk=4248007772&output=html&bc=7&pv=1&wgl=1&asnt=0-569460145677980215&dff=Poppins%2C%20sans-serif&prev_fmts=360×320&prev_slotnames=3820811019&brdim=0%2C0%2C0%2C0%2C360%2C0%2C360%2C708%2C360%2C708&ifi=2&rafmt=13&pfx=0&adf=3529224331&nhd=0&adx=20&ady=1563&oid=2&is_amp=5&amp_v=2309290141000&d_imp=1&c=973961944707318&ga_hid=1187&dt=1697134402666&biw=360&bih=708&u_aw=360&u_ah=800&u_cd=24&u_w=360&u_h=800&u_tz=60&u_his=1&vis=1&scr_x=0&scr_y=70&url=https%3A%2F%2Fwww.thecable.ng%2Fbreaking-cbn-to-intervene-in-fx-market-lifts-ban-on-43-items&loc=https%3A%2F%2Fwww.thecable.ng%2Fbreaking-cbn-to-intervene-in-fx-market-lifts-ban-on-43-items%2Famp&ref=https%3A%2F%2Fwww.thecable.ng%2Fbreaking-cbn-to-intervene-in-fx-market-lifts-ban-on-43-items&bdt=5828&dtd=1069&__amp_source_origin=https%3A%2F%2Fwww.thecable.ng

On Wednesday, the naira fell to a new all-time low, trading at N1,045 to the dollar in the street markets. The depreciation was sustained at the official market at N776.

In the statement, signed by Isa AbdulMumin, CBN’s director of corporate communications, the regulator pledged to continue to promote orderliness and professional conduct by all participants in the foreign exchange market to ensure market forces determine exchange rates on a willing buyer, willing seller principle.

“The CBN reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates,” the statement reads.