Naira Falls Massively to N755 at Official Market as CBN Fulfils President Tinubu’s Wishes
- The Nigerian naira reached a value of N755 per dollar at the investors and exporters window on Wednesday, June 14
- This marks a significant development in President Bola Tinubu's move to close the gap between black and official market rates
- The Central Bank of Nigeria (CBN) has now instructed banks to quote the naira to dollar exchange rate based on market determinants
In a significant development, the Nigerian naira has reached the value of N755 per dollar at the investors and exporters window, which is now the official market rate.
BusinessDay reports that the Central Bank of Nigeria (CBN) instructed commercial banks to engage in forex trading based on market-determined rates.
Source: Getty Images
According to multiple sources, Nigeria has officially adopted a floating exchange rate system for its currency, abandoning the long-held hard peg that had deterred investors and depleted its foreign currency reserves.
Recall that President Bola Tinubu, during his inaugural speech, had promised to unify the multiple exchange rates in the market.
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Reports show that banks are now quoting a market rate determined by the mutual agreement between buyers and sellers, with emails to customers confirming this change.
The Cable also reported that at the investors and exporters (I&E) window, the naira is currently traded within the N750 to N755 per dollar range.
Some bankers also anticipate that the rate may climb as high as N800 by the end of today. They emphasise dthe need to prioritise the supply of dollars to support the floating naira.
More developments on new exchange rate
When Legit.ng contacted Isa Abdulmumin the CBN acting Director of Corporate Communication confirmed the changes.
He also noted that full forex operational guideline will be released.
"Yes we are making changes, full details will be made public soon"
CBN gets news acting Governor, Folashodun Adebisi Shonubi
In another report, Legit.ng profiled the new acting CBN governor, Folashodun Adebisi Shonubi, and his career journey.
Shonubi was considered for the role by President Tinubu among four deputy governors: Aisha Ahmed, Edward Adamu, and Kingsley Obiora.
By law, one of the deputies must complete Emefiele’s tenure, which was expected to expire on May 2024.
Source: Legit.ng
