Lagos, June 14, 2023 -The Central Bank of Nigeria (CBN) on Wednesday introduced a floating exchange rate system in the foreign exchange market by giving traders at the Import and Export (I&E) window a modicum of freedom in the exchange rate determination.
According to traders, the apex bank allowed traders in the segment to trade within just a N1 margin.
They said there was no ceiling unlike the old system.
The exchange rate stabilised at N750 to the dollar at the segment by noon on Wednesday.
Analysts said the ripple effect would soon be felt across all the segments of the market with time.
The I&E segment is one of the active of the five segments of the market in Nigeria.
In removing the exchange rate band, the central Banking is gradually working toward a unified foreign exchange rate.
President Bola Tinubu, in his inaugural address to the nation, had promised to stop the multiple exchange rates through which the market became a cesspool of corruption. (GBN)
