CBN: Banks Can Now Freely Trade Forex At Any Rate

The Central Bank of Nigeria (CBN) has allowed commercial banks to freely trade foreign exchange at any rate.

This is in line with the promise of President Bola Ahmed Tinubu to unify the multiple exchange rate in the market.

The move follows the recent removal of former Central Bank Governor Godwin Emefiele, who controlled the rates at which the dollar was traded across the country’s three different foreign exchange (FX) windows.

This development suggests that banks are now authorised to sell forex at rates determined by market forces, indicating a shift towards a freely floating exchange rate system in the country.

Multiple sources within the central bank, as well as informed traders, have confirmed this development.

These sources reveal that trades are currently being conducted at rates as high as N750/$1. Meanwhile, on the parallel market, the exchange rate has surged to as high as N773/$1 for incoming foreign currency transactions.

However, an official confirmation from the Central Bank is still awaited, as the bank is yet to release a formal statement regarding this matter.

By Temitope Hassan