After ending Monday’s trading in the investor & exporter FX market at 770.38/$, the naira fell even further against the dollar.
The trade rates had ended at N686.96/$ on Friday, according to data from the FMDQ on Monday.
Trading started at N703.50 per dollar and reached a high of N799 before ending at N770.38 per dollar.
At the end of Monday’s trading, the I&E currency window had a total turnover of $78.03 million.
The Central Bank of Nigeria ordered Deposit Money Banks to eliminate the rate cap at the I&E window so that the naira could float freely against the dollar and other major world currencies.
The banking regulator described its new FX operation in a study entitled “Understanding the Operational Changes to the Foreign Exchange Market.”
It claimed that by combining all FX market segments into one window, the I&E window became the only window through which qualifying FX transactions could be made because all other windows were eliminated.
According to the Central Bank of Nigeria (CBN), “The I&E market operates on a willing buyer, willing seller framework, where an entity with a demand for foreign exchange seeks out another entity with foreign exchange to sell at an agreed-upon price through an approved dealer.”
According to the willing buyer and willing seller approach, both sides mutually agreed on the pricing, as explained.
According to the CBN, banks will continue to offer access to PTA, BTA, and other invisible transactions at the current market rate.
