There are unconfirmed reports that the Central Bank of Nigeria (CBN) has directed banks to trade foreign exchange at any exchange rate in the Investors & Exporters window based on willing buyer, willing seller arrangements.
This has triggered a response in the I&E window as exchange rate rose sharply to N750-N755 per dollar
However, the apex bank is yet to release an official statement on the matter.
The development came just two weeks after President Bola Tinubu vowed to unify the exchange rate in his inauguration speech on May 29, 2023.
“Monetary policy needs a thorough housecleaning. The Central Bank must work towards a unified exchange rate,” the President had said. “This will direct funds away from arbitrage into meaningful investment in the plant, equipment, and jobs that power the real economy.”
Also, the development trailed the suspension of the Godwin Emefiele as the CBN Governor last Friday and his arrest by the Department of State Services.
The implication of the development is that buyers and sellers of foreign currency in the official FX market are allowed to quote their preferred rates, as against previous practice where CBN dictate rates.