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Nigeria launches currency forex futures market

Xinhua, June 28, 2016 Adjust font size:

The Nigerian government on Monday formally flagged off the Naira Settlement Foreign Exchange Market.

The Central Bank of Nigeria (CBN) said in a statement reaching Xinhua that this product is novel in Nigeria and it gives comfort regardless of the price at which you have quoted to buy foreign exchange in the country.

Governor of the apex bank Godwin Emefiele expressed delight that the foreign exchange market in Nigeria has attained the position where participants in Nigeria can settle foreign exchange futures transactions in Naira.

"In the same vein, the product is also expected to provide relief to Nigerians seeking dollars to import critical machinery and raw materials from abroad as they can now lock-in their foreign exchange deals in earnest against their future demands," he added.

He reaffirmed the commitment of the apex bank to ensure the success of the new foreign exchange market structure and also promised to honor all obligations arising from future deals.

Nigeria announced the new policy, two weeks ago, to deal with the effect of the drop in international oil prices and global growth slowdown which had impacted negatively on the country's economy.

The West African nation had pegged the naira to the dollar at 197-199 since March 2015, even while other oil exporters had let their currencies devalue as global crude oil prices took a downturn.

Nigerian leader Muhammadu Buhari had previously said he would not "kill" the local currency by letting it devalue. Endit