CBN Allows Banks to Trade $$ freely at open Market Rate
Reports reaching Daily Sun indicate that the Central Bank of Nigeria (CBN) has given commercial banks and dealers in the forex market the green light to sell FX freely at a market-determined rate.
This is coming after sources stated that the rate cap of the Investors and Exporters (I&E) window has been removed.
This is in line with the intentions of the new administration to move to a unified exchange rate.
As of the last count, the rate on the I&E window was about N463.38/$1 before the June 12 holiday.
The initial understanding of this message is that banks can now sell FX at market-determined rates, suggesting Nigeria is now operating a freely floating exchange rate.
For instance, for a buyer of the US dollar and the seller of the dollar in the I&E window, this will have an impact on the parallel markets which might be obliterated if Nigeria eventually has a free exchange rate which will be determined by participants.
When Daily Sun called to confirm from sources at the apex bank and traders, there was no response. However, official confirmation will have to come later in the day when data from the FMDQ is available.
Daily Sun also understands official confirmation will be issued by the CBN.
