WHAT TO KNOW ABOUT CBN OPERATIONAL CHANGES TO THE FOREIGN EXCHANGE MARKET

COLLAPSING ALL SEGMENTS IN THE FX MARKET INTO THE INVESTORS’ AND EXPORTERS’ (I&E) WINDOW:
[/b]All eligible FX transactions in the market shall only be done via the I&E window, all other windows cease to exist
It is a model in which willing buyer, willing seller system, where an entity with demand for FX seeks out another entity with FX to sell at a mutually agreed price through an authorised dealer I.e a unified fx rate

[b]ACCESSING BTA, PTA, MEDICAL AND SCHOOL FEES:
PTA, BTA, and other invincible transactions will continue to be accessed through the banks at the prevailing market rate.
There is no change in the application process
All applications shall be through the banks
All documentation requirements remain the same

WEIGHTED AVERAGE RATE, AND HOW IT IS CALCULATED TO 2 DECIMAL PLACES: This is a summation of volumes of FX traded multiplied by the various rates at which the deals are consummated, divided by the total volume of trade

ORDER-BASED TWO-WAY QUOTES: This is two-way quote trading in which all transactions traded backed

THE ORDER BOOK:
The Order Book is an electronic trading system where demand can be matched to supply on any given trading day
It is visible to the entire market to ensure transparency of Orders and seamless transactions

THE ‘’43 NON-ELIGIBLE ITEMS’’ ACCESS TO FX:
The status quo remains on the ‘’43 non-eligible items’’
They are not permitted to be funded from the I&E window