CBN Floats Naira, Allows Forex Traders, Banks To Trade Dollars At Flat Rate – Report

After many years of resisting pressure from the World Bank and the International Monetary Fund (IMF) to float the Naira, the Central Bank of Nigeria (CBN) appears to have capitulated.

Forex traders- commercial banks and forex dealers- were on Wednesday allowed to trade the Naira freely without a cap on the rate.

Investigations by The Nation revealed Forex traders at the Investors and Export (I&E) window were only allowed to buy and sell Forex only at N1 difference.

A dealer confirmed there were no restrictions at the market on Wednesday morning.

The dealer stated that as of 12 noon on Wednesday, the Naira was already exchanging at N750 to the dollar.

However, the final rate will be determined at the close of trading by 4 pm.

The trader hinted that the free-floating of the Naira may not be unconnected with a recent statement credited to. Wale Edun, a close associate of President Bola Tinubu, that the exchange rate will soon be unified.

Also Read:  CBN Finally Directs Banks To Accept N500, N1,000 Old Naira Notes

Edun told Bloomberg a few days ago that “there are other sorts of things that need be put in place” before full exchange rate unification.

He added: “It’s quite imminent, no date has been set, but as I said, I think it’s already moved, there’s already movement in that direction but it’s very difficult to put the date on it and I don’t think it would be long at all”.

President Bola Tinubu at his inaugural speech vowed to unify the exchange rates to bring about stability and in the Forex market.



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.