It is one year since CBN introdocuced the NAFEX Policy and rescued the Naira and have a massive boost to the stock market.
Let us take a look at the Policy.
What is the NAFEX fixing?
• The CBN established the Investors and Exporters FX Window (I&E FX Window) on the 21st of April 2017.
• The goal of the I&E FX Window was to improve Nigeria’s FX market mechanisms, deepen market liquidity, accommodate all eligible FX transactions and ensure their prompt execution and settlement.
• The supply of foreign currency to the window has been through portfolio investors, exporters, authorized dealers and other parties with foreign currency to exchange for Naira.
• The CBN has also participated in this window, providing liquidity and professional market conducts and interferes from time to time as it deems fit.
• Eligible transactions on the Window include: i) Invisible Transactions (excluding International Airlines Ticket Sales Remittances) as detailed under Memorandum 15 of the CBN FX Manual ii) Bills for Collection iii) Any other trade-related payment obligations (at the instance of the customer)
• Sequel to the introduction of the window, the Financial Market Dealers Quote (FMDQ) introduced a reference exchange rate for it known as the Nigeria Autonomous Foreign Exchange Rate Fixing (NAFEX), which serves as the spot rate for the exchange and is published at noon each day.
reporting for easykobo.com on Friday, April 20 2018 from Lagos, Nigeria