The foreign exchange market in Nigeria facilitates international transactions between buyers and sellers of different currencies. The supply of foreign currency consists of both buyers and sellers. The supply is derived from Nigerian exports, oil and non-oil imports, foreign tourist spending, and repatriation of Nigerian funds abroad. However, despite the limited supply of foreign currency, there are still some opportunities for gaining access to it. This article discusses the options available to Nigerians.
The CBN was established in 1994 to centralise the foreign exchange authority and develop a local foreign exchange market. The centralized market helps in regulating the prices of foreign exchange. It is also able to stabilize the exchange rate. This way, the country is free to choose a currency that is most beneficial to its economy. In addition, the CBN is able to keep a close eye on the foreign exchange market and maintain its stability.
The study aims to identify what kind of foreign exchange stories are covered in Nigerian newspapers. Some of the objectives of the study include the degree of prominence given to foreign exchanges, the frequency of coverage, and the sources of foreign exchange stories. In order to achieve these objectives, the research method was used to review relevant literature and a sample size of 84 editions was used. During the analysis, the authors looked for stories about the FOREX market in Nigeria in various media, including online and print media.
A more flexible foreign exchange market is available to consumers. This market allows investors to purchase and sell foreign currency using a system of auction. The process of purchasing foreign exchange in Nigeria is guided by the wholesale Dutch auction system, where authorized dealers bid for foreign currencies under the supervision of the Central Bank. The winning bidders receive foreign exchange at the bid rate. Hence, the foreign exchange rate is influenced indirectly by the CBN. Moreover, the Central Bank determines how much foreign currency to supply in the market.
The foreign exchange market is the world’s largest and most liquid marketplace. Its participants include financial institutions, individuals, and small companies. It’s also open twenty-four hours a day, seven days a week. Previously, the market was only accessible to large institutions, but the advent of the internet has changed the face of this market. Now, even novice investors can participate in currency trading and purchase and sell currencies through a foreign exchange platform.