The Central Bank of Nigeria might have eventually floated the Naira. For years, the World Bank and the International Monetary Fund had suggested that that was the way to end the dual Naira exchange system.
On Wednesday, commercial banks and foreign exchange dealers were allowed to trade the Naira freely without a cap on the rate.
Investigations by The Nation revealed that foreign exchange traders at the Investors and Export window were allowed to buy and sell foreign exchange only at N1 difference.
A dealer confirmed that there were no restrictions at the market on Wednesday morning.
The dealer stated that, as of Noon on Wednesday, the Naira was already exchanging at N750 to the dollar.
However, the final rate will be determined at the close of trading by 4 pm.
The trader hinted that the free-floating of the Naira might not be unconnected with a recent statement credited to a close associate of President Bola Tinubu, Wale Edun that the exchange rate would soon be unified.
Edun told Bloomberg a few days ago that “there are other sorts of things that need be put in place” before full exchange rate unification.
He added: “It’s quite imminent, no date has been set, but as I said, I think it’s already moved, there’s already movement in that direction but it’s very difficult to put the date on it and I don’t think it would be long at all”.
In his inaugural speech, President Tinubu vowed to unify the exchange rates to bring about stability and in the foreign exchange market.
