• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Markets Currencies

OFFICIAL: CBN announces unification of all exchange rate windows

CBN announced major changes to foreign exchange market

Nairametrics by Nairametrics
June 14, 2023
in Currencies, Markets, Spotlight
FMDQ Markets, Spot FX market
Share on FacebookShare on TwitterShare on Linkedin

The Central Bank of Nigeria (CBN) has announced the unification of all segments of the forex market collapsing all windows into one.

This was part of a series of immediate changes to operations in the Nigerian Foreign Exchange (FX) Market, in a bid to improve liquidity and stability.

According to a press release signed by the Director of Financial Markets, Angela Sere-Ejembi, PhD, and dated 14 June 2023, the changes include:

RelatedStories

Naira sinks in black market, U.S dollar posts best month in 2025

Naira weakens to N1,565/$1 on parallel market, widest gap with official rate in over one week 

August 5, 2025
C& I Leasing reports N487.9 million profit in Q1 2025, as lease rental income jumps 9.67% 

C & I Leasing to acquire 71.15% stake in Ghana’s Leasafric Logistics, seeks nod for N15 Billion bond issuance 

August 5, 2025

1. 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. 

2. 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.

3. Setting the operational rate for all government-related transactions at the weighted average rate of the previous day’s executed transactions at the I&E window, rounded to two decimal places.

  • Operational rate for government-related transactions: The CBN will set the operational rate for transactions related to the government. This rate will be the weighted average rate of the previous day’s executed transactions at the I&E window, rounded to two decimal places.

4. Prohibiting trading limits on oversold FX positions and allowing hedging of short positions with OTC futures. Limits on overbought positions will be zero.

  • This means trading limits on oversold FX positions will no longer be imposed, and short positions can be hedged with Over-The-Counter (OTC) futures. However, there will be zero limits on overbought positions.

5. Reintroducing order-based two-way quotes, with a bid-ask spread of N1. All transactions will be cleared by a Central Counter Party (CCP).

  • Two-way quotes with a bid-ask spread of N1 will be reintroduced. This means there will be a fixed difference between the buying and selling prices. All transactions will be cleared by a Central Counter Party (CCP).

6. Reintroducing an Order Book to ensure transparency of orders and seamless execution of trades.

  • An Order Book will be reintroduced to ensure transparency of orders and smooth execution of trades.

7. The CBN also announced the cessation of two schemes that were introduced to boost remittances and forex supply: the RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, effective from 30 June 2023.

  • This means the scheme is now abolished! 

What this means

Based on the changes mentioned in the news, the exchange rate in the Nigerian Foreign Exchange (FX) Market will now be determined by market forces.

  • Previously, there were different windows and a fixed exchange rate system in place. However, with the recent changes, the exchange rate will be determined through the Investors and Exporters (I&E) window, where transactions will be conducted.
  • This implies a shift from a fixed exchange rate system to a floating exchange rate system.
  • Under the new system, market forces such as supply and demand will play a significant role in determining the exchange rate.
  • The rates at which eligible transactions can access foreign exchange will be based on the “Willing Buyer, Willing Seller” model, allowing participants to transact at their preferred rates within the I&E window.

Finally, the move towards a single window and the use of market forces to determine the exchange rate signifies a shift toward a more flexible and market-driven exchange rate system, which can bring about greater liquidity and stability in the Nigerian FX Market.

Download the CBN Forex Circular


Follow us for Breaking News and Market Intelligence.
Nairametrics

Nairametrics

Nairametrics is Nigeria's top business news and financial analysis website. We focus on providing resources that help small businesses and retail investors make better investing decisions. Nairametrics is updated daily by a team of professionals. Post updated as "Nairametrics" are published by our Editorial Board.

Related Posts

Naira sinks in black market, U.S dollar posts best month in 2025
Currencies

Naira weakens to N1,565/$1 on parallel market, widest gap with official rate in over one week 

August 5, 2025
C& I Leasing reports N487.9 million profit in Q1 2025, as lease rental income jumps 9.67% 
Companies

C & I Leasing to acquire 71.15% stake in Ghana’s Leasafric Logistics, seeks nod for N15 Billion bond issuance 

August 5, 2025
BVN, NIN
Exclusives

Nigerian lawyers react to massive NIN, BVN data sales, blame agencies 

August 5, 2025
US work permits, extension period for work permits, USCIS,
Education

UK opens applications for 2025 Chevening Scholarships, Envoy urges Nigerians to apply 

August 5, 2025
Ecobank posts second-biggest quarterly profit in Q1 2025, driven by core and non-interest income 
Financial Services

Nedbank to sell 21% stake in Ecobank, ending 17-year strategic alliance 

August 5, 2025
Latest crude oil price drop threatens Nigeria’s revenue and naira stability 
Commodities

Nigerian crude stable as Trump accuses India of buying Russian crude 

August 5, 2025
Next Post
Things to consider when going on a business trip

Exchange Rate Unification: How it affects PTA/BTA, Medical Expenses, School Fees etc.

Comments 3

  1. ismail says:
    June 15, 2023 at 12:18 pm

    All of these is confusing to the ordinary Nigerian. The government increased the price of the Naira at the official market. The black market will still exist, the I&E window is just a fancy market that most ordinary Nigerians still won’t have access to.

    Reply
    • Daniel says:
      June 16, 2023 at 8:33 am

      You have said it all. Black market sale is still on as we speak. Go to your local mallam and check.

      Reply
  2. MaestroEfe says:
    June 17, 2023 at 9:35 am

    What is this I&E sef?

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Palmpay

first bank








DUNS

Recent News

  • Naira weakens to N1,565/$1 on parallel market, widest gap with official rate in over one week 
  • C & I Leasing to acquire 71.15% stake in Ghana’s Leasafric Logistics, seeks nod for N15 Billion bond issuance 
  • Nigerian lawyers react to massive NIN, BVN data sales, blame agencies 

Follow us on social media:

Recent News

Naira sinks in black market, U.S dollar posts best month in 2025

Naira weakens to N1,565/$1 on parallel market, widest gap with official rate in over one week 

August 5, 2025
C& I Leasing reports N487.9 million profit in Q1 2025, as lease rental income jumps 9.67% 

C & I Leasing to acquire 71.15% stake in Ghana’s Leasafric Logistics, seeks nod for N15 Billion bond issuance 

August 5, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics