The Central Bank of Nigeria (CBN) has significantly changed the foreign exchange market.
In an announcement on Wednesday, June 14, 2023, the apex bank stated that all foreign exchange transactions will now be conducted exclusively through the Investors and Exporters (I&E) window. This decision effectively eliminates the country’s parallel market and other forex markets.
The Central Bank of Nigeria (CBN) has taken steps to unify all exchange rates in the country. They have consolidated all foreign exchange market segments into the Investors and Exporters (I&E) window.
READ ALSO: Nigerian student rejoices: President Tinubu signs student loan bill into law
CBN obeyed President Tinubu instruction
Just two weeks after President Bola Tinubu pledged to unify the multiple exchange rates in the country, the Central Bank of Nigeria (CBN) has taken action to implement this unification.
Additionally, the announcement of these changes in the foreign exchange market comes shortly after the suspension and detention of CBN Governor Godwin Emefiele. Emefiele’s unconventional monetary policies had been hindering investors and adversely affecting the economy.
Tinubu expressed this goal in his inauguration speech on May 29, 2023. Prior to these changes, on June 14, 2023, the CBN announced the floating of the naira and instructed banks to trade forex freely.
Naira depreciates after recent policy
As a result of these changes, the Nigerian naira experienced a significant depreciation.
At the close of trading on Wednesday, the naira was valued at N664.04 per dollar at the Investors and Exporters (I&E) Window. This represents a decline of 40.97% in the value of the naira compared to the previous day’s rate of N471 per dollar at the I&E Window
Reactions: Mr President you are doing well
Let’s have a look at some of the comments:
@David: Dollar is crashing against the naira as most Nigerians rush to sell off their stacked dollars!!President Bola Ahmed Tinubu,you are the one doing this😉☺️
We are in for a Renewed Hope
@Adams:Emefiele legit made us believe at some point that Aboki FX was the reason Naira was falling against the dollar. He even declared a physical combat with Aboki FX.
Man was used to borrow our future away.
@Onyeka:In just a day US Dollar/Naira exchange rate from $1/N765 to $1/N666. It will be $1/600 by end of June and $1/N500 before the end of the year. If U have $, change to naira now. But no surprises to us. We know who 37% of voted for. Money expert. Wealth creator. Carry on.
@dipo:CBN will no longer exchange Naira to dollar (FX) for any company, student, pilgrim, govt official etcEveryone that needs FX must go to the open market, commercial banks and to buy dollars at prices determined by the market flow and never again by CBN
@tosin:CBN has been holding dollar to naira rate at 460. Pegging.Now they have told banks to sell freely. So it means people can get dollars at the bank for whatever rate the banks can afford to sell it. Which will be lower than 760 (black market).
READ ALSO: Declare late Chief MKO Abiola president-elect, Accord Party urges Tinubu
Why did President Tinubu sack the EFCC chairman
In another news, President Bola Ahmed Tinubu has recently suspended AbdulRasheed Bawa, the Chairman of the Economic and Financial Crimes Commission (EFCC). The suspension is aimed at allowing security agents to conduct a thorough investigation into Bawa’s conduct while in office.
There have been multiple allegations against Bawa since he became the EFCC chair. One recent accusation came from former Zamfara State governor Bello Matawalle, who claimed that Bawa demanded a $2 million bribe from him. Bawa has denied the allegation and stated that the former governor should provide evidence to support his claim.
Furthermore, Bawa has been accused of misusing his position of power, which should have been respected and upheld.
