Commercial banks to trade forex freely as CBN floats currency

By Business A.M.

The Central Bank of Nigeria (CBN) has directed commercial banks to trade Foreign Exchange (FX) freely on the Investors and Exporters (I&E) FX Window at market-determined rates.

This, according to reports, means that the country is now operating a freely floating exchange rate, rather than the previous market cap. The move is also expected to enable the naira to find a market level against the dollar based on the forces of demand and supply.

Following the development, Business A.M gathered that the dollar is quoting between N750 to N755/$. . Meanwhile, in the black market, the exchange rate traded for as high as N773/$1 for “inflows” which represent dollars or other currencies sold over the wires.

Though the CBN is yet to issue an official confirmation on the report, the move is believed to be in unison with President Bola Tinubu’s promise to offer a holistic FX reform that includes harmonizing exchange rates in order to attract investors into the country.