Nigeria's central bank introduced a new spread limit on interbank transactions on Monday, it said in a statement, in an attempt to boost liquidity in the currency market. All interbank transactions will be subject to a maximum spread of 1 naira ($0.0033), the Central Bank of Nigeria (CBN) said. A year ago, the bank had said the naira would trade with no pre-determined spreads.
The new rules take effect immediately, said the statement. The move, announced along side a series of other new regulations, could help the bank improve liquidity in its troubled foreign exchange market, marred by a gap between the stronger official exchange rate and a weaker black market rate.
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