CBN Introduces Another Forex Window For Investors, Exporters

[caption id="attachment_19305" align="alignnone" width="750"]Godwin Emefiele, CBN Governor[/caption]

The Central Bank of Nigeria (CBN) has announced another Forex widow for investors and exporters tagged ‘Investors’ & Exporters’ FX Window’.

This is coming two weeks after the apex bank introduced a special Forex window for Small and Medium Enterprises (SMEs) to enable them import eligible finished and semi-finished items.

Dr. Alvan Ikoku, Director, Financial Markets, CBN disclosed this in a circular stating that the new window was to boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.

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The circular listed eligible transactions under the new window to include invisible transactions such as loan repayments, loan interest payments, Dividends/Income Remittances, Capital Repatriation, Management Service Fees and Consultancy fees.

Also listed are Software subscription fees, Technology Transfer Agreements, Personal Home Remittances and any such other eligible transactions including ‘miscellaneous Payments’ as detailed under Memorandum 15 of the CBN Foreign Exchange Manual.

The CBN disclosed that supply of foreign currency to the window shall be through portfolio investors, exporters, authorised dealers and other parties with foreign currency to exchange to naira.

The CBN circular added that there shall also be a market participant at the window to promote liquidity and professional market conduct.

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Taking cognizance of the slow progress made by corporates in on-boarding the FMDQ OTC Securities Exchange (FMDQ) Thomson Reuters FX Trading & Auction Systems, the CBN said participants at the new window would trade via telephone until appreciable progress is made with the FX trading systems on-boarding process.

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