The Central Bank of Nigeria

Naira Sinks To 770.38/$ On The Official Market

The naira fell further against the dollar after ending at 770.38/$ at the end of trading on Monday’s investor and exporter FX window.

The trade rates had ended at N686.96/$ on Friday, according to data received from the FMDQ on Monday.

Trading started at N703.50 per dollar and reached a high of N799 before ending at N770.38 per dollar.

At the end of Monday’s trading, the I&E currency window had a total turnover of $78.03 million.

To enable the naira’s free float versus the dollar and other major world currencies, the Central Bank of Nigeria last week ordered deposit money banks to eliminate the rate cap on the naira at the I&E window.

In a study entitled “Understanding the Operational Changes to the Foreign Exchange Market,” the banking regulator described its new FX operation.

It claimed that by combining all FX market segments into one window, the I&E window became the only window through which qualifying FX transactions could be made because all other windows were eliminated.

According to the CBN, “the I&E market operates on a willing buyer, willing seller framework, where an entity with a demand for foreign exchange seeks out another entity with foreign exchange to sell at an agreed-upon price through an approved dealer.

According to the willing buyer and willing seller approach, both sides mutually agreed on the pricing, it was explained.

According to the CBN, banks would continue to provide access to PTA, BTA, and other invisible transactions at the going market rate.