The Naira depreciated to N664.04/$ due to CBN lifting restrictions.

The Naira lost almost half of its value in the official market as the exchange rate in the Investors and Exporters (I&E) window rose to N664.04 per dollar from N471.67 per dollar on Tuesday.

The Central Bank of Nigeria (CBN) announced measures to liberalise the market, including the elimination of multiple exchange rates and freedom for banks to buy and sell foreign exchange at any rate based on a willing buyer and willing seller arrangement. The operational rate for all government-related transactions shall be the weighted average rate of the preceding day’s executed transactions at the I&E window, calculated to two decimal places. Trading limits on oversold FX positions with permission to hedge short positions with Over-The-Counter-futures shall be zero. The Central Bank of Nigeria (CBN) has announced the re-introduction of order-based two-way quotes, bid-ask spread of N1, order book, cessation of RT200 Rebate Scheme and the Naira4Dollar Remittance Scheme, and further guidance on these matters.

Data from the FMDQ showed that the I&E window exchange rate closed yesterday at N664.04 per dollar, up from N471.67 per dollar on Tuesday. The parallel market exchange rate dropped to N755 per dollar, from N768 per dollar on Tuesday. This development will lead to the elimination of multiple exchange rates, arbitrage, round tripping, and other malpractice, as well as enhance foreign exchange inflow into the country and improve government revenue by about N4 trillion.