L
LequteMan
Guest
The Central Bank of Nigeria has made a definitive move to end round-tripping, double-dealing and other practices of unwholesome gaining from the country's foreign exchange market.
Round-tripping is the illegal sale of foreign exchange sourced from official market into the unofficial segment of the market.
According to the rules of a new policy guideline released today, currency retail operators and Bureaux de Change will not be able to buy dollars from the interbank market.
The central bank said it will operate a single market structure, abandoning its 16-month naira peg to the dollar which has overvalued the currency, and that it would participate in the currency market through interventions.
The central bank also fixed trading positions for lenders at +0.5 percent/-10 percent of their shareholders' fund.
Round-tripping is the illegal sale of foreign exchange sourced from official market into the unofficial segment of the market.
According to the rules of a new policy guideline released today, currency retail operators and Bureaux de Change will not be able to buy dollars from the interbank market.
The central bank said it will operate a single market structure, abandoning its 16-month naira peg to the dollar which has overvalued the currency, and that it would participate in the currency market through interventions.
The central bank also fixed trading positions for lenders at +0.5 percent/-10 percent of their shareholders' fund.
