THE CENTRAL BANK (CURRENCY CONVERSION) DECREE, 1967
Decree · Trade
Policy date: 1967-01-01
A Decree that authorizes the Central Bank of Nigeria to convert and exchange currency. It targets banks, importers, exporters, and the public. This maintains the naira exchange rate and regulates foreign exchange transactions.
THE CENTRAL BANK (CURRENCY CONVERSION) DECREE, 1967
What Is This Policy?
A 1967 military decree (now enacted as an Act) authorising the CBN to convert and exchange currency, providing the legal basis for Nigeria's foreign exchange regime and the naira conversion system.
Who Does It Target?
CBN as the currency conversion authority Banks and authorised dealers in foreign exchange Importers and exporters transacting in foreign currency Members of the public exchanging currency
What Does It Aim to Achieve?
Provide the legal framework for the CBN to manage and regulate currency conversion, maintain the naira exchange rate, and control foreign exchange transactions.
Key Features
Conversion Authority: CBN is the sole authority for managing currency conversion and the exchange rate. Authorised Dealers: Only CBN-authorised banks and BDCs may deal in foreign exchange. Exchange Control: Provides basis for exchange control measures as needed. Currency Management: Legal basis for CBN's management of external reserves and currency supply.
Current Status
Rollout Stage: Active (as Central Bank Currency Conversion Act) Coverage: Nigerian foreign exchange market Beneficiaries: Financial system stability; importers and exporters Funding: Not applicable
How to Access
Exchange currency through CBN-authorised banks and BDCs Provide documentation for foreign exchange transactions above prescribed thresholds Comply with CBN foreign exchange guidelines Application method: Exchange currency at authorised dealer banks.
Important Terms
Parallel market foreign exchange dealing is illegal CBN may intervene in the market to stabilise the naira Exchange rate policy is set by the CBN Monetary Policy Committee
Official Resources
Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN)
Legal Framework
Promulgated under the decree-making powers of the Supreme Military Council. Now enacted within the Laws of the Federation of Nigeria framework. The Central Bank of Nigeria Act 2007 is the operative statute governing currency operations. Operates alongside the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act and the Banks and Other Financial Institutions Act (BOFIA) 2020. Provides historical legal basis for CBN's currency conversion authority.