The Central Bank of Nigeria, CBN, in its quest to fulfill President Tinubu's mandate to give foreign Exchange a free hand has directed commercial banks to ignore the cap that was formerly placed on the naira Importers and Exporters (I&E) window to allow naira float against the dollar. The policy comes newly just two weeks into the office of the Tinubu administration to strengthen the naira in a free market as against the former multiple free exchanges.
confirming the development, the Chief Executive Officer of the Commercial Banks disclosed that, banks are now free to trade Forex on the I&E window as they wish subject to a naira spread.
In his statement, “The CBN has called banks that the rate cap has been removed at I&E Window.
The financial expert added, “Hence, banks and customers are allowed to trade freely at any rate subject to N1 spread between buy and sell rate”.
Consequently, the new policy has today set the naira at the I&E window on a free fall at moment until when the market will stabilize itself through the market forces of demand and supply.
Details shortly......
