The total turnover on the I&E forex window at the end of Monday’s trading amounted to $78.03 million.
By Johnson Atoukudu:
The value of the Nigerian naira against the US dollar declined further, reaching 770.38 naira per dollar at the close of trading on the investor and exporter forex window on Monday. This is in contrast to the rate of 686.96 naira per dollar recorded on Friday, according to data from FMDQ.
The trading session opened at 703.50 naira per dollar, peaked at 799 naira per dollar, and eventually settled at 770.38 naira per dollar. The total turnover on the I&E forex window at the end of Monday’s trading amounted to $78.03 million.
Last week, the Central Bank of Nigeria instructed Deposit Money Banks to remove the rate cap on the naira in the I&E window, allowing for a free float of the national currency against the US dollar and other global currencies.
This move was explained in the CBN’s report titled “Understanding the operational changes to the foreign exchange market.” The report clarified that all eligible foreign exchange transactions would now be conducted solely through the I&E window, as other windows ceased to exist.
The I&E market operates based on a willing buyer and willing seller system, where entities seeking foreign exchange engage in transactions with entities possessing foreign exchange at an agreed price, facilitated by authorized dealers. The CBN further noted that personal travel allowances (PTA), business travel allowances (BTA), and other invisible transactions would continue to be accessed through banks at the prevailing market rate.
