The Central Bank of Nigeria (CBN) has devalued the naira in the official market with authorised dealers expected to sell the dollar at N664.04/$1 after the close of trading on Wednesday.
Ripples Nigeria gathered that the naira was devalued by 40.7 percent, with the price of the dollar rising by N192.37 kobo this night.
The FMDQ Exchange, the official market foreign exchange rate aggregator, confirmed the development on Wednesday night.
Recall that the naira to dollar exchange rate closed at N471.67/$1 on Tuesday evening.
This, however, rose to N664.04/$1 on Wednesday.
This, therefore, indicates that the CBN no longer controls the exchange rate movement with the dollar trading as high as N791/$1 on Wednesday and as low as N461/$1 in the intraday trading before selling at N664.04/$1.
In a circular released on Wednesday evening, the apex bank announced the reintroduced of the “Willing Buyer, Willing Seller” model which allows the market to determine the rates at which the foreign currencies would be sold in the official market.
The circular read: “Re-introduction of the “Willing Buyer, Willing Seller” model at the I&E Window. Operations in this window shall be guided by the extant circular on the establishment of the window, dated 21 April 2017, and referenced FMD/DlR/ClR/GEN/08/007. All eligible transactions are permitted to access foreign exchange at this window.
“The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two (2) decimal places.”
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