Toba Owojaiye ReportingÂ
Commercial banks in Nigeria have been granted the freedom by the Central Bank of Nigeria to engage in foreign exchange trading at their desired rates.
This development follows the suspension of Godwin Emefiele as the governor of the CBN.
Nigeria has officially transitioned from a fixed peg for its currency, the naira, to a floating exchange rate system, which has alleviated concerns among investors and reduced the outflow of dollars from the economy.
Reports indicate that banks are now quoting a market rate determined by the mutual agreement of buyers and sellers. Some banks have communicated this change to their customers via email. The current rate in the Investors’ and Exporters’ (I&E) window ranges between N750 and N755 per dollar.
It is anticipated by certain bankers that the rate may rise to N800 by the end of the day. Consequently, there is a suggestion among these bankers to prioritize the supply of dollars to support the floating naira.