CBN intensifies Forex supply, creates investor-exporter window

By Chioma Obinagwam
As part of efforts to ensure adequate supply of Foreign Exchange (FOREX) in addition to convergence of Forex rates in the parallel and interbank windows, the Central Bank of Nigeria(CBN), at the latest Bankers Committee meeting held in April, unveiled a new Forex window known as the Investor-Exporter window.
The Director of Banking Supervision at CBN, Ahmed Abdullahi said that the window, which will be determined purely by market forces, will allow investors to come in and trade their Forex at a price they consider appropriate.
He said, “There is also another initiative, the investor/exporter window, where it will be a market where prices will be determined by market forces. Because of the convergence of rates, confidence is going to be built in the market so we are likely to see investors come in. In order to further build confidence, that is why we have this window that will enable them come in and improve the inflow of Forex in the economy.”
So far, the CBN has been engaged in intensive intervention of Forex in the various windows, the latest being the sale of the sum of $100 million to authorised dealers at the Tuesday Forex whole sale auction, a move greatly commended by reknowned economists as a way of moving the economy out of recession in the short term.