…as CBN Directs Banks to Trade Freely
The Central Bank of Nigeria (CBN) has directed deposit money banks to trade the naira freely at market determined rate.
On Wednesday, naira traded at N750-N755 per dollar at the investors and exporters (I&E) window.
Sources on Wednesday confirmed that the Central Bank of Nigeria (CBN) has directed commercial banks to sell forex freely at market-determined rates.
The market rate is said to be a “willing buyer, willing seller” arrangement.
This implies that Nigeria has eased its control of the naira, allowing the local currency to freely float.
A free-floating exchange rate occurs when a government allows the exchange rate to be determined purely by market forces and there is no attempt to ask the central bank to influence the external value of the exchange rate.
The development comes days after the suspension of Godwin Emefiele as CBN governor by President Bola Tinubu.
Deputy Governor, operations directorate, Folashodun Adebisi Shonubi, was appointed to act as the CBN governor pending the conclusion of an investigation ordered by the president into Emefiele’s activities.
The Department of State Services (DSS) later announced that Emefiele is currently in its custody for “some investigative reasons”.