Nigeria has officially floated the naira as it started exchanging today at the Investors and Exporters’ FX Window (I & E) at the rate of N755 to the US dollar, BusinessDay reports.
As of June 9, the naira exchanged to the US dollar at the rate of N463.38/$, according to the data published by the Central Bank of Nigeria.
According to FMDQ, the I & E Window is “the market trading segment for investors, exporters and end-users that allows for FX trades to be made at exchange rates determined based on prevailing market circumstances, thus ensuring efficient and effective price discovery in the Nigerian FX market.”
The latest economic decision of the Tinubu-led federal government followed his inaugural speech where he promised many economic reforms including the unification of the multiple exchange rates in the country.
“I have a message for our investors, local and foreign: our government shall review all their complaints about multiple taxation and various anti-investment inhibitions.
“Monetary policy needs thorough house cleaning. The Central Bank must work towards a unified exchange rate. This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy,” President Tinubu said on May 29,2023.
Meanwhile, reactions have continued to trail the latest policy direction, even as most market watchers have welcomed it.
“President Bola Tinubu is the first President of Nigeria with a financial background. Let me tell our 419 businessmen some hard truths. Your days of going to the villa at night to get import duty exemptions, tax waivers, fraudulent judgement claims and bogus business deals are over. Focus on legitimate business deals. Tinubu will not pick a winner like past Presidents. This time you will have to earn your position in the Nigerian Economy,” Senator Ben-Murray Bruce said on his official twitter handle.
“In line with ETM’s expectations, the Nigerian naira has depreciated by more than 20% against the USD today, with the USD-NGN surging to 600.00, according to Bloomberg data,” Kieran Siney, co-head of financial markets and head of Africa at ETM Analytics.
