Banks told to trade forex 'freely' in Nigeria

Reports reaching Nairametrics indicate the central bank has given commercial banks and dealers in the forex market the green light to sell forex freely which is at a market-determined rate.

This is in line with the promise of President Bola Tinubu to unify the multiple exchange rate in the market.

The initial understanding of this message is that banks can now sell forex at market-determined rates, suggesting Nigeria is now operating a freely floating exchange rate.

Nairametrics confirmed this from multiple sources at the central bank and from traders with knowledge of the matter.

However, official confirmation will have to come later in the day when data from the FMDQ is available. Nairametrics also understands official confirmation will be issued by the central bank.

Sources also report trades are now going for as high as N750/$1. Meanwhile, in the black market, the exchange rate traded for as high as N773/$1 for “inflows” which represent dollars or other currencies sold over the wires.

This is a developing story, check back later for details….