CBN Launches Revised FX Manual to Stabilize Market

The Central Bank of Nigeria (CBN) has introduced a revised foreign exchange manual, effective June 1, as part of its broader strategy to stabilize the foreign exchange market. CBN Governor Olayemi Cardoso emphasized the necessity of this update to align foreign exchange administration with current realities.

The manual aims to provide a clearer regulatory framework, addressing long-standing criticisms of Nigeria's FX market, which has been characterized by opacity and administrative bottlenecks. Deputy Governor Muhammad Abdullahi noted that the revision is part of a comprehensive review initiated by Cardoso's administration to restore confidence, improve transparency, and deepen liquidity in the FX market.

This reform follows previous initiatives, including the adoption of an electronic foreign exchange matching system and efforts to unify exchange rate determination. The CBN's commitment to creating a more efficient and transparent market infrastructure is expected to enhance investor sentiment and stabilize the foreign exchange environment.