The Nigerian naira experienced a further decline against the US dollar, closing at 770.38/$ at the end of trading on the investor and exporter forex window on Monday. This comes after the trading rates closed at N686.96/$ on Friday, according to data from the FMDQ.
The trading session opened at N703.50/$, reached a high of N799/$, and ultimately closed at N770.38/$. The total turnover on the I&E forex window for the day amounted to $78.03 million.
In a recent directive, the Central Bank of Nigeria instructed Deposit Money Banks to remove the rate cap on the naira at the I&E window, allowing for a free float of the national currency against the US dollar and other global currencies. The new forex operation consolidates all segments of the foreign exchange market into the I&E window, making it the sole platform for eligible FX transactions.
The I&E market operates on a willing buyer, willing seller system, where entities seeking foreign exchange connect with those willing to sell at an agreed-upon price through authorized dealers. The rates are determined by mutual agreement between the parties involved.
The CBN clarified that personal travel allowances (PTA), business travel allowances (BTA), and other invisible transactions would continue to be accessed through banks at the prevailing market rate.
