The Central Bank of Nigeria (CBN) has announced the unification of all segments of the Nigerian forex market.
The apex bank, in a statement Wednesday, announced the collapse of all windows into the Investors & Exporters (I&E) window.
This move is part of the Nigerian government’s efforts to improve liquidity and stability in the market and attract foreign investors into the Nigerian economy.
The apex bank stopped the RT200 programme and the naira4dollar remittance scheme effective 30 June.
According to the press statement signed by the Director of Financial Markets, Dr. Angela Sere-Ejembi, the bank abolished the segmentation of the FX market into different windows.
According to her, “All transactions will now be done through the Investors and Exporters (I&E) window, where the exchange rate will be determined by market forces. Applications for medicals, school fees, BTA/PTA, and SMEs would continue to be processed through deposit money banks”.
Earlier reported today that there claims that the CBN had directed banks to remove the cap on the investors’ and exporters’ (I & E) window of the forex market to allow for the free float of the naira exchange rate.
As a result of the development, the Naira weakened significantly against the United States dollar at the Investors and Exporters window as CBN allowed the local fiat to trade ‘freely’ in an effort to reset the nation’s monetary policy.
