Foreign exchange dealers said on Tuesday they are drawing up proposals to persuade the Central Bank of Nigeria, CBN to ease restrictions on forex trades to revive the secondary market, reports Reuters.
The CBN restricted dollars sales in the interbank market in February, a move that has sharply reduced liquidity in the interbank market and put off foreign investors from buying equities and bonds in Africa’s biggest economy.
The naira currency was trading at 197 on the interbank market on Tuesday. It has been stuck in the 197-199.50 range since February, after the CBN pegged the rate.
Two members of Nigeria’s Financial Market Dealers Association, FMDA told Reuters that they were finalising proposals “to find a way to resolve the problem of liquidity and curb speculation.”
Another source with direct knowledge of the matter said that the CBN was aware of the talks by the dealers.
The CBN did not respond to requests for comment on whether it would consider a review of its measures.
Its Monetary Policy Committee is due to meet on May 19.
A relaxation on the interbank restrictions would likely mean a swift drop in the naira currency, analysts said.
“The naira exchange rate has remained unsurprisingly stable following the introduction of the ‘order-based’ system in February,” South Africa’s NKC Independent Economists said in a note.
The naira hit a record low of 206.6 naira to the greenback in February while the black market, considered the “real” value, was even lower at around 223-227, triggering the action by the CBN to restrict foreign exchange trading.

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