- President Bola Ahmed Tinubu inaugurated his first National Economic Council, coinciding with the unification of Nigeria’s forex market by the Central Bank.
- The National Economic Council consists of state governors, the Central Bank governor, and other government officials, chaired by the Vice-President.
- The forex market changes include the consolidation of all transactions into the Investors and Exporters (I&E) window, where the exchange rate is determined by market forces, and the reintroduction of the “Willing Buyer, Willing Seller” model, allowing eligible transactions to access foreign exchange at preferred rates.
President Bola Ahmed Tinubu has officially inaugurated his administration’s first National Economic Council, coinciding with the Central Bank of Nigeria’s announcement of the unification of the forex market, merging all segments into a single window.
The council, typically consisting of 36 state governors, the CBN governor, and other officials, aims to foster collaboration among governments at all levels. The Vice-President chairs the council.
A statement by the National media, said “President Bola Tinubu Inaugurates National Economic Council, Calls For Collaboration Amongst Governments At All Levels.”
More details are expected of the inauguration, which took place at the Aso Villa according to media footage.
What you should know
Yesterday, According to a press release signed by the CBN’s Director of Financial Markets, Angela Sere-Ejembi, Ph.D., and dated 14 June 2023, the FX changes include:
- Abolishing the segmentation of the FX market into different windows. All transactions will now be done through the Investors and Exporters (I&E) window, where the exchange rate will be determined by market forces. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks.
- Previously, the FX market was divided into different windows, but now all transactions will be conducted through the Investors and Exporters (I&E) window. This means even those applying for BTA and PTA will also pay the official exchange rate at the I&E window. The exchange rate in this window will be determined by market forces.
- Reintroducing the “Willing Buyer, Willing Seller” model at the I&E window, where all eligible transactions can access foreign exchange at their preferred rates.
- Willing Buyer, Willing Seller model: The CBN is reintroducing this model at the I&E window. It means that eligible transactions can access foreign exchange at the rates they prefer.
