Dollar sells for N755 as FG unifies exchange rates

Dollar sells for N755 as FG unifies exchange rates

The Federal Government may have finally unified the exchange rate as the United States dollar on Wednesday sold for N755 at the investors and exporters (I&E) window.

The amount was at par with what was being offered at the open market, an indication that no more official or different rate for foreign currency buyers.

Sources also said on Wednesday that the Central Bank of Nigeria (CBN) had directed commercial banks to sell forex freely at market-determined rates.

The market rate is said to be a willing-buyer willing-seller arrangement.

This implies that Nigeria has eased its control of the naira, allowing the local currency to freely float.

A free-floating exchange rate is when a government allows the exchange rate to be determined by market forces without any influence by the central bank.

President Tinubu during his inaugural speech on May 29 had declared his government’s decision to unify the exchange rate in Nigeria.

Under the last administration, the CBN offered the US dollar through several windows at tightly controlled rates, with little liquidity, to businesses and individuals.

An influential member of the President Tinubu’s advisory board, Wale Edun, said on Monday that Nigeria was set to unify its exchange rates.

He told told Bloomberg via telephone that the unification of exchange rates in the country was “imminent.”

The latest development is coming days after the suspension of Godwin Emefiele as CBN governor by President Tinubu.

Folashodun Adebisi Shonubi, deputy governor, operations directorate, is expected to act as the CBN governor pending the conclusion of an investigation ordered by the president into Emefiele’s activities.

The Department of State Services (DSS) later announced that Emefiele is currently in its custody for “some investigative reasons”.