The Central Bank of Nigeria (CBN) has directed Deposit Money Banks (DMBs) to sell dollars, euros, and pounds at market-determined rates.
This development indicates that the CBN has finally 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. He was also arrested by the DSS and was flown in a private jet from Lagos to Abuja where he has been in the custody of the DSS.
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.
