To enable the naira’s free float versus the dollar and other major world currencies, the Central Bank of Nigeria is said to have instructed deposit money banks to eliminate the rate cap on the naira at the Investors and Exporters’ (I&E) Window of the foreign exchange market.
Just two weeks had passed since President Bola Tinubu made a commitment to synchronize the country’s various exchange rates.
The CEO of a commercial bank claims that banks are currently permitted to trade currency on the I & E window at any rate, subject to N1 spread.
The rate cap at the I&E Window has been abolished, according to a call from the CBN to banks.Therefore, subject to N1, banks and clients are free to transact. Following the development, the naira depreciated to over N700/dollar during trading on the I&E window on Wednesday.