Sources at the Money market have hinted that the Central Bank of Nigeria has directed Deposit Money Banks to remove the rate cap on the naira at the Investors’ and Exporters’ (I&E) Window of the foreign exchange market. The move is intended to allow for a free float of the national currency against the Dollar and other global convertible currencies.
A top banker told a section of the media that the directive will allow banks to trade forex on the I & E window at any rate, subject to N1 spread.
“The CBN has called banks that the rate cap has been removed at I&E Window.
“Hence, banks and customers are allowed to trade freely at any rate subject to N1 spread between buy and sell rate”, the bank chief said.
The new rule is coming at the heels of the inauguration of President Bola Ahmed Tinubu on May 29, 2023, when he promised that the exchange rates for the Naira will be unified.
The news of the rules gave the Naira a push during the day as it appreciated to over N700/dollar during trading on the I&E window on Wednesday.