Investor Presentaiton
THE CBN UNDERTOOK A SUBSTANTIAL FX REFORM
Multiple windows
IN THE PAST: 4 official windows, each
one with a different price discovery
mechanism.
NOW: All windows were merged into the
I&E window.
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Price discovery
IN THE PAST: Willing buyer willing-seller
mechanism was only available at the I&E
window, and it was not fully enforced.
⚫NOW: Willing buyer-willing seller
reintroduced.
Transparency and
predictability
IN THE PAST: Not all orders were
registered.
NOW: Order Book reintroduced.
.
IN THE PAST: The rate for government-
related transactions was within 2 percent
of the NAFEX.
NOW: The operational rate for all the
government-related transactions is the
weighted average rate of the proceeding
day's executed transactions at the I&E
window.
IN THE PAST: RT 200 and Naira4Dollar
Remittance Schemes: costly, subsidized
FX windows.
NOW: Schemes removed.
NIGERIA
THE WORLD BANK
IBRD ⚫IDA | WORLD BANK GROUP
Source: CBN
The Central Bank has
communicated clearly to the
public the operational changes
to the FX market.
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