There's new information indicating that the Central Bank of Nigeria has granted commercial banks and forex market dealers the green light to freely sell foreign exchange at rates determined by the market. This aligns with President Bola Tinubu's commitment to unifying the multiple exchange rates that have plagued the market.
The essence of this update is that banks are now authorized to sell foreign currency at rates dictated by market forces, indicating a shift towards a freely floating exchange rate regime in Nigeria. Reliable sources within the central bank and knowledgeable traders have corroborated this understanding with Nairametrics.
While we await official confirmation, expected later today with the release of data from the FMDQ, we have learned that the central bank will indeed issue an official statement to affirm this development.
Reports suggest that trades are currently transpiring at exceptionally high rates, with figures reaching as high as N750/$1. Similarly, the black market has seen the exchange rate surge to N773/$1 for "inflows," denoting the sale of dollars or other currencies transmitted electronically.
Editor's Note: With the adoption of a market-determined exchange rate system, we anticipate that this decision will stimulate substantial investments in Nigeria. By fostering transparency and stability in the forex market, we hope to witness a renewed interest in contributing to Nigeria's economic growth. In a month or two some startups will need to go back to the drawing board, most especially the ones in the cross-border payment sectors.
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