Today, the naira closed at N795.28/$ in the Investors and Exporters (I&E) window- official market.
The rate at the parallel market was N800/$, which was stronger than N825/4 it closed over the weekend.
Data from FMDQ Exchange indicated drop in market liquidity from $90 million daily average last week to $34.55 million on Monday.
The Central Bank of Nigeria (CBN) unified all exchange rates into the I&E window and allowed market forces to determine exchange rate for the naira.
The floating of the naira, which officially ended decades of multiple exchange rate regime was one of the first policy pronouncements by Nigeria’s newly elected President, Bola Ahmed Tinubu.
On the inauguration day, he announced series of bold reforms many considered long overdue, including a directive to the Central Bank of Nigeria (CBN) to unify all exchange rates.
The multiple exchange rates the International Air Transport Association (IATA) rate, parallel market rate, Interbank Exchange Rate and Bureaux De Change (BDC) rate were collapsed into the Investors & Exporters (I&E) window.
The policy shift entailed that all dollar applications for medicals, school fees, Business Travel Allowance/Personal Travel Allowance, and SMEs are now processed through the I&E window- where rates are determined by market forces.
Credit: The Nation
