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Controls on commercial transactions and investment instruments
On 17 February 2015, the Central Bank of Nigeria (CBN) banned access to foreign exchange auctions, introduced constraints on local banks and devalued the national currency, the Naira.
The CBN closed two foreign exchange auction windows: the Retail Dutch Auction System (RDAS) and Wholesale Dutch Auction System (WDAS). Both systems were introduced after the liberalization of the foreign exchange market and had a managed float exchange rate between 160 to 176 Naira per USD at the time the systems were closed.
Nigerians are now encouraged to buy USD at the interbank market whose exchange rate is subject to government intervention. From now on, banks are only allowed to purchase foreign exchange in case they have prior order by corporate clients. According to Reuters, the CBN pegged the currency at 198 Naira per USD.
The country introduced the measure as its foreign exchange accounts are shrinking due to falling oil prices. The measure follows a currency devaluation in November 2014. Please, consult measure no. 9707 under Related Measures.
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