The Central Bank of Nigeria (CBN) has granted authorization to commercial banks and forex market dealers, permitting them to freely sell foreign exchange (forex) at rates determined by the market.
This move marks a shift towards a more market-driven approach in forex trading, potentially impacting the accessibility and pricing of foreign currencies in Nigeria’s financial landscape.
According to multiple sources, this is in line with the promise of President Bola Tinubu to unify the multiple exchange rate in the market.
The initial understanding of this message is that banks can now sell forex at market-determined rates, suggesting Nigeria is now operating a freely floating exchange rate.
However, official confirmation will have to come later in the day when data from the FMDQ is available. Sources also report trades are now going for as high as N750/$1.
This is a developing story, check back later for details….
