Olayemi Cardoso has launched the fourth edition of the Foreign Exchange Manual, introducing a revised framework aimed at modernising FX administration while warning market operators against misconduct before its June 1, 2026 implementation.

Speaking in Abuja, the Central Bank of Nigeria governor said the updated manual reflects efforts to align FX management with global realities and domestic economic shifts, including inflation control and diversification of foreign exchange earnings.

He stressed that compliance expectations begin immediately, cautioning that the transition period is not a window for regulatory arbitrage or violations, as the apex bank strengthens monitoring for fairness, consistency, and accountability.

Describing foreign exchange as a critical driver of price stability, capital flow, and investor confidence, Cardoso said the revised framework—developed through extensive consultations and technical review—aims to enhance clarity, efficiency, and predictability in the market.

The previous edition, issued in 2018, necessitated an update due to structural changes in both global and domestic markets, with the new version introducing operational adjustments such as revised import payment thresholds, digital travel allowance disbursements, non-resident account provisions, and stricter reporting rules.

Cardoso emphasised that successful implementation depends on collective responsibility across stakeholders, including banks, corporates, regulators, and government agencies, noting that the manual will be distributed free to authorised dealers to prioritise compliance.

He highlighted improved FX market liquidity, with daily turnover rising from about $100 million to between $400 million and $600 million, occasionally hitting $1 billion, signalling increased confidence and a shift toward a more open and competitive system.

Reaffirming the broader reform agenda, he said the ultimate goal remains a deeper, more liquid FX market capable of sustaining stability, reducing distortions, and strengthening investor confidence, while stressing that external reserves are buffers, not direct funding sources for the market.

Also speaking, Deputy Governor Muhammad Sani Abdullahi said the revised manual is part of ongoing reforms to restore confidence, improve price discovery, attract inflows, and build a resilient, market-driven foreign exchange system.