CBN Orders Banks To Conduct Forex Trading At Any Rate

There are reports indicating that the Central Bank of Nigeria (CBN) has instructed banks to engage in foreign exchange trading at market-determined rates.

This implies that banks are now permitted to trade exchange rates in the Investors & Exporters window based on agreements between buyers and sellers.

The consequence of this directive was evident on Wednesday, as the exchange rate witnessed an increase from N471.47 to N610 per dollar compared to the previous day.

Jameela News has discovered that while the CBN has not issued an official statement regarding this development, some bank executives have confirmed the directive to news correspondents.

Although the CBN has not formally communicated the directive, two banking executives have confirmed its authenticity to news correspondence.

Impact

In the meantime, Nnamdi Nwizu, an investment banker and Co-founder of Comercio Partners, stated that the immediate effect of this directive will be an influx of foreign exchange into the economy and a further rise in the inflation rate, as evidenced by the aggressive increase in the I&E window exchange rate today.