JUST IN: Naira Hits N755/$ as CBN Reportedly Directs Banks to Trade Freely

The Naira is currently trading at N750-N755 per dollar at the Investors and Exporters (I&E) window due to a new policy of the country’s monetary authorities.

According to sources familiar with the development, the Central Bank of Nigeria (CBN) has directed commercial banks to sell forex freely at market-determined rates.

The market 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.

A free-floating exchange rate occurs when a government allows the exchange rate to be determined purely by market forces and there is no attempt to ask the apex bank to influence the external value of the exchange rate.

Another source confirmed the development to ECONOMIC CONFIDENTIAL on Wednesday afternoon, adding that it could be made official soon.