The naira closed at N664.04 per dollar at the investors and exporters (I&E) window on Wednesday.


Earlier in the day, the local currency was initially quoted between N750 and N755 per dollar before appreciating to close at N664.04 to the greenback.

The I&E foreign exchange (FX) window is the country’s official exchange rate trading platform. It is a segment for investors, exporters, and end-users, which allows for FX trades to be made at exchange rates determined based on prevailing market realities.

According to data from FMDQ OTC Securities Exchange, the local currency opened at N471.67 to the dollar, depreciating to N755 after the float, then recovering to N664.04 at the close of business.


The closing rate represents a day-on-day depreciation of 40.8 percent from the N471.67 traded at the I&E window on Tuesday.

The development comes after the Central Bank of Nigeria (CBN) officially floated the naira and directed commercial banks to sell forex freely at market-determined rates.

For the first time in years, the local currency was allowed to trade at a rate determined by market forces.

However, checks by TheCable by 7:51 pm on Wednesday showed that the CBN website did not reflect the FMDQ rates.

The I&E column on the CBN website still showed N463.38 per $1, the official rate as of June 9.

Parachoko:
Pandorians no go have a good night sleep today

KingOfIsoko1:
Propaganda

franchasofficia:
A good start for now.


But guess where the problem is?


CBN doesn't have enough dollar to meet Nigerians' usd demand, remember we are an import dependent country.


What it means is that Nigeria doesn't earn enough FX through export to meet up with the dollar demand of Nigerians, which means many Nigerians will be going to Aboki for dollar and Aboki will be determining the rate based on demand of dollar for the day, and this will definitely lead to uncontrolled crash of Naira value against USD.



I commend Tinubu for this good dollar floating policy, but it would have been better done after putting certain things in place to ensure CBN earns or have enough dollar to supply to all banks to sell to Nigerians.



One of those things that would earn us more FX and also reduce our FX outflow is putting our local refineries in working condition and leasing them out to private entities to run for Nigeria to reduce importation of petrol which gulps most of our FX. While fixing the national refineries, Dangote's refinery will also be ready and both combined would solve our importation of petrol which consumes majority of Nigeria's FX.

ThankUUJesus:
this policy won't work. save this comment...4 years from now, dollar would get to $1500 as long as we are still under britain influence and IMF. except Peter Obi steps in to save the day

franchasofficia:
A good start for now.


But guess where the problem is?


CBN doesn't have enough dollar to meet Nigerians' usd demand, remember we are an import dependent country.


What it means is that Nigeria doesn't earn enough FX through export to meet up with the dollar demand of Nigerians, which means many Nigerians will be going to Aboki for dollar and Aboki will be determining the rate based on demand of dollar for the day, and this will definitely lead to uncontrolled crash of Naira value against USD.



I commend Tinubu for this good dollar floating policy, but it would have been better done after putting certain things in place to ensure CBN earns or have enough dollar to supply to all banks to sell to Nigerians.



One of those things that would earn us more FX and also reduce our FX outflow is putting our local refineries in working condition and leasing them out to private entities to run for Nigeria to reduce importation of petrol which gulps most of our FX. While fixing the national refineries, Dangote's refinery will also be ready and both combined would solve our importation of petrol which consumes majority of Nigeria's FX.

Ofunaofu:


It seems there is a disconnect between your mind, brain and fingers

Your comments are evidence of this

Parachoko:
Pandorians no go have a good night sleep tonight

BrownSugq:
Una Sabi lie o