On the Investor & Exporter FX window on Wednesday, the naira strengthened vs the US dollar, closing at 793.70/$.
On the I&E window, the local currency had previously traded at N825 a week earlier.
According to data collected from the FMDQ, trade on Wednesday started at 778.07/$ and ended at 793.70/$ after reaching a high of 853/$.
As of the close of trading, the trading had a turnover of $87.19m.
According to certain Bureau de Change employees who spoke with our correspondent, the dollar was bought and sold at the parallel market for N820 and N825 each.
To enable the naira’s free float versus the dollar and other major world currencies, the Central Bank of Nigeria has instructed Deposit Money Banks to eliminate the rate cap on the naira at the I&E window.
In a study entitled “Understanding the Operational Changes to the Foreign Exchange Market,” the banking regulator described its new FX operation.
It claimed that by combining all FX market segments into one window, the I&E window became the only window through which qualifying FX transactions could be made because all other windows were eliminated.
According to the CBN, “the I&E market operates on a willing buyer, willing seller framework, where an entity with a demand for foreign exchange seeks out another entity with foreign exchange to sell at an agreed-upon price through an approved dealer.
According to the willing buyer and willing seller approach, both sides mutually agreed on the pricing, it was explained.
According to the CBN, banks would continue to provide access to PTA, BTA, and other invisible transactions at the going market rate.
