By Tony Obiechina Abuja
The Central Bank of Nigeria (CBN) has issued a directive to Deposit Money Banks, instructing them to eliminate the rate cap on the naira at the Investors and Exporters’ (I&E) Window of the foreign exchange market.
This move aims to enable the national currency to freely float against the dollar and other global currencies.
This development comes shortly after President Bola Tinubu’s commitment to unify Nigeria’s multiple exchange rates, which was made just two weeks ago.
A CEO of a commercial bank has confirmed the news, stating that banks are now permitted to trade forex on the I&E window at any rate, with a maximum spread of N1.
“The CBN has informed banks that the rate cap has been removed at the I&E Window. As a result, banks and customers are allowed to trade freely at any rate, as long as the spread between the buy and sell rates is within N1,” the bank CEO explained.
Following this announcement, the naira experienced depreciation, with the exchange rate surpassing N700/dollar during trading on the I&E window on Wednesday.
