Naira To Trade ‘Freely’ Against Dollar

 


there have been recent developments in Nigeria's foreign exchange market. According to the information you provided, President Bola Tinubu promised to unify the multiple exchange rates in the market, and it appears that banks can now sell foreign exchange at market-determined rates. This suggests that Nigeria is moving towards a freely floating exchange rate system.

The Investors & Exporters (I&E) window is quoting a range of N750 to N755 per dollar, as reported by customers who received emails from their banks. However, the Central Bank of Nigeria (CBN) still shows a rate of N463 per dollar on its website, although the rate has not been updated since June 9.

The recent actions by the CBN may be a response to President Bola Tinubu's suspension of CBN Governor Godwin Emefiele. It seems that Emefiele's monetary policies were considered unorthodox and were seen as a hindrance to investors and the economy.

There is speculation among bankers that the exchange rate could reach as high as between N800 and N1000 per dollar by the end of the day. These bankers suggest that the CBN's next step should be to prioritize the supply of dollars to support the floating naira.

It is important for the CBN to focus on increasing the supply of dollars into the market to attract foreign investors. Some sources mentioned the need for a hedge mechanism priced in line with the market, attractive market yields for Foreign Portfolio Investors (FPIs), transparency, the removal of controls around domiciliary accounts, and the clearance of the dollar backlog in the market.

Overall, there are high expectations for the efforts to fix Nigeria's broken foreign exchange market, but it remains to be seen how the situation will unfold. It's advisable to wait for official confirmation and additional data from the FMDQ for a more accurate understanding of the current state of the exchange rate.

JOIN OUR WHATSAPP GROUP FOR LATEST UPDATES ABOUT YOUR DESIRED DESTINATIONS BY CLICKING ON THE LINK BELOW



Post a Comment

0 Comments