Naira rate hits N755 as bankers say CBN told them to trade freely
By OUR REPORTER
Barely two weeks after the Central Bank of Nigeria (CBN) denied that it had devalued the Naira to about N630 to a dollar, despite published evidence from people on the street who claimed they applied for foreign currencies and were granted at that rate, facts have now further emerged that the June 1, 2023 report was correct while the apex bank’s denial remains unclear.
Some keen followers of developments had sought for patience as truth that the CBN denied would soon come to the open.
On Wednesday June 14, the truth the apex bank could not confirm finally came clear as the Central Bank of Nigeria (CBN) has reportedly told Deposit Money Banks (DMBs) to freely float the naira against the dollar and other international currencies.
This is as the naira trades at between N730 and N755 per dollar at the Investors and Exporters (I&E) window on Wednesday, according to a media report.
Although the apex bank is yet to release an official statement on the matter, bankers and customers who traded in Foreign Exchange on Wednesday said that the naira now trades between N730 and N755, it was gathered.
The development came just two weeks after President Bola Tinubu vowed to unify the exchange rates and remove fuel subsidy in his inauguration speech on May 29, 2023.
“Monetary policy needs a thorough housecleaning. The Central Bank must work towards a unified exchange rate,” the President had said. “This will direct funds away from arbitrage into meaningful investment in the plant, equipment, and jobs that power the real economy.”
Also, the development trailed the suspension of the Godwin Emefiele as the CBN Governor last Friday and his arrest by the Department of State Services on Saturday.
The implication of the development is that buyers and sellers of foreign currency in the official FX market are allowed to quote their preferred rates, as against previous practice where CBN dictate rates.
The new rate N755/$1 showed over 20% decline in the value of the naira compared to the previous rate of N463/$. At the moment, naira is now on a par with the dollar both at the I&E window and at the black market.
