The Central Bank of Nigeria (CBN) has removed the official exchange rate of N379 to the dollar from its website.
TheCable understands the decision was made because exchange rates change daily and no one is using the rate on the CBN website.
This implies that the Importer and Exporter (I&E) window is now the default benchmark exchange rate for official transactions in the country.
The I&E FX window is the market trading segment for investors, exporters and end users that allows forex transactions to be made at exchange rates determined based on market circumstances.
The window was introduced in 2017 by the CBN to improve the mechanisms of the forex market, deepen market liquidity and ensure prompt execution and settlement of all fx trades.
Nigeria runs several monetary regimes, which frustrate businesses and have prompted the World Bank to call for rates to unify to attract investment. The bank linked the approval of a $ 1.5 billion budget support loan to monetary reforms.
The CBN tried to unify rates and stimulate the supply of dollars through direct interventions. He extended an incentive last week to recipients of dollar remittances to try to encourage more entries from the Nigerian diaspora.
In March, Zainab Ahmed, Minister of Finance, Budget and National Planning, said Nigeria had entered a flexible exchange rate by adopting the Nigerian autonomous exchange (NAFEX) as the new official rate for government transactions.
“Within the government and the central bank, there is only one official rate, and that is the NAFEX rate,” Ahmed said. A claim Godwin Emefiele, governor of the CBN, refuted.
Commenting on this development, Ayodeji Ebo, head of retail investments at Chapel Hill Denham, said: “The removal could be to shift attention to the exchange window of investors and exporters, which has also been the benchmark rate for the government in 2021. “
“This step further strengthens the adoption of the I&E window as it will reduce controversy over which benchmark rate to use for transactions,” he told TheCable.
On Friday, the naira rose 0.02% to trade $ 410.40 at noon on the Investor and Exporter FX window (I&E FX window).