The Central Bank of Nigeria (CBN) has reportedly instructed banks to engage in foreign exchange trading at any exchange rate within the Investors & Exporters window, based on willing buyer and willing seller arrangements.
This directive has resulted in a significant increase in the I&E window exchange rate, which rose to N610 per dollar as of 12:50 pm, compared to N471.67 the previous night.
Although the CBN has not officially released a statement regarding this matter, two banking executives have confirmed the authenticity of the directive, Vanguard reports.
Nnamdi Nwizu, an investment banker and Co-founder of Comercio Partners, expressed that the immediate consequences of this directive include an influx of foreign exchange into the economy and a further surge in the inflation rate, as evidenced by the sharp increase in the I&E window exchange rate today.