Fakoyejo OlalekanThe Central Bank of Nigeria (CBN) has reportedly directed Deposit Money Banks (DMBs) to sell dollars, euros and pounds at market-determined rates.
According to a report by Nairametrics, the CBN has decided to allow Nigeria’s foreign exchange markets to operate a freely floating exchange rate.
Recall that during his inaugural speech, President Bola Tinubu announced that he will ensure a single foreign exchange regime by collaborating with the CBN and reviewing the existing monetary policies.
One of the decisions taken so far to unify the foreign exchange market was the suspension of Godwin Emefiele, the Governor of the CBN, last week Friday.
According to sources that spoke to the publication, the forex rate is up at N750/$1 in the official market, up from about N471.67 FMDQ Exchange reported on Tuesday.
While the CBN and FMDQ Exchange hasn’t confirmed the report, the increase closes the gap between the official window and the black market, where a dollar was sold at N755.7/$1 on Tuesday.
The spokesperson of the CBN, Isa Abdulmumin, didn’t respond to a message from Prime Business Africa, nor was he reachable via calls.
What you need to know
Although Prime Business Africa previously reported that the CBN has directed authorised forex dealers to freely sell international currencies without first seeking approval.
This was disclosed in a statement seen by PBA, which also instructed banks and other forex-authorised dealers to ensure every foreign currency purchased in the inter-bank market is sold before the next day.
“Authorised Dealers may defease their excess foreign currency trading positions to other Authorised Dealers without seeking prior approval from the CBN,” the apex bank said.
CBN further stated: “Funds purchased by an Authorised Dealer from another Authorised Dealer, in the inter-bank market, shall not be held in position overnight by the buying Authorised Dealer or sold to another Authorised Dealer.”
According to the circular, the directives will further liberalise the foreign exchange market in Nigeria, as President Tinubu seek to unify the multiple forex rates.
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