The Central Bank of Nigeria on Friday created a foreign exchange window for investors and exporters tagged, “Investors and Exporters FX Window”.

In a circular, the CBN said the window will boost liquidity in the forex market and timely settlement for eligible transactions.

The circular which was signed by the bank’s Director, Financial Markets, Dr. Alvan Ikoku said the transactions cover loan repayments, loan interest payments, dividends/income remittances, capital repatriation, management service fees and consultancy fees.

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It also listed software subscription fees, technology transfer agreements, personal home remittances and any such other eligible transactions including ‘miscellaneous payments’.

While explaining that the invisible transactions under this window excludes international airlines ticket sales’ remittances, the circular added that the window covered bills of collection and any other trade-related payment obligations, which are at the instance of the customer.

The circular further clarified that the permitted invisible transactions and bills for collection were eligible to purchase foreign currency sourced from the CBN Forex window limited to Secondary Market Intervention Sales (SMIS) Wholesale (Spot and Forwards) only.

“Taking cognizance of the slow progress made by corporates in on-boarding the FMDQ OTC Securities Exchange (FMDQ) Thomson Reuters FX Trading & Auction Systems, the CBN said participants at the new window would trade via telephone until appreciable progress is made with the FX trading systems on-boarding process,” the bank said.

As part of the operational requirements of the window, the CBN circular said the exchange rates of the transactions in the window shall be as agreed between authorized dealers and their counterparties.

It also said that the CBN reserved the right to intervene as a buyer or seller, as it deems fit, in the window, adding that information on transactions between authorized dealers shall be reported to the CBN on a daily basis.