LEGIT NG
Nigeria’s official foreign exchange market recorded a total transaction volume of $1.83 billion weekly, showing increased FX activities.
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, confirmed the development during an interactive session and said the significant increase in FX transactions was due to reforms initiated by the CBN, yielding positive results in the market.
Investors’ confidence growing in FX market
The rise in dollar liquidity has reportedly reaffirmed investors’ growing confidence in the Forex market.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, also said at the event that the Nigerian government was committed to easing the pains of Nigerians via social security strategy.
Also, the apex bank recently announced that it had removed the +2.5% cap spread on interbank Forex transactions.
The statement was contained in a circular dated February 8, 2024, and signed by the Director, Financial Markets Department, Duke Omotunde.
The circular said:
“A key objective of the CBN’s ongoing foreign exchange market reforms is to promote a market-based price discovery system. Consequently, the bank discontinues any cap on the spread of interbank foreign exchange transactions and restrictions on the sale of interbank proceeds.
