The naira on Wednesday jumped to N750-N755 a dollar at the investors and exporters (I&E) window.
This follows the directive by the Central Bank of Nigeria (CBN) to commercial banks to sell forex freely at market-determined rates in line with President Bola Tinubu’s pledge to unify the rate.
The market-determined 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.
Reports showed that the naira appreciated by 0.18 percent to close at N471.67/$ at the I&E window on Tuesday, according to details on FMDQ OTC Securities Exchange, a platform where FX is officially traded.
Some commercial banks it was gathered on Wednesday have pegged the USD to Naira rate at N699 to N750.
Speaking on the development in an interview on Wednesday, Dr. Andrew Nevin, the Advisory Partner & Chief Economist of PricewaterhouseCoopers (PwC), said the unification of foreign exchange rates will impact the country dramatically by boosting investment opportunities in Nigeria.
“What has been happening is that CBN is taking dollars from the Federation’s account and giving to privileged individuals at N411 to US dollar while the real price is N700 to N750 to the Dollar, we don’t really know because they’ve removed price transparency.
What happens is that the state government cannot pay their pensioners. That fundamental issue will be addressed by the development. Now the state government will get full value for its dollar.
“It will have a dramatic impact on the fiscal structure of the country when we stop giving the dollar to privileged individuals. We get better investment, more fair use of the country’s resources and improved business environment, this will strengthen Nigeria’s currency”, he stated
