CBN removes previous exchange rate of N463 per dollar from website, updates to N632.77

To make the naira devaluation official, the Central Bank of Nigeria (CBN) has replaced the previous naira-to-dollar rate on its website and quoted the new rates from the Investors and Exporters (I&E) window.

The old rate pegged the naira at N463 per dollar and was referred to as the official exchange rate in which investors, importers, and exporters bought the dollar.

CBN reveals the date of new exchange rate policy

As of Thursday, June 15, 2023, the apex bank quoted N632.77 per dollar from the I&E window displayed on its site, indicating that it has formally devalued the local currency.

It said the new rate takes effect from Wednesday, June 14, 2023.

The CBN said the British pound was quoted at N799.75 from N581.52 the before the naira float. Euro is quoted to have moved from N498.94 before the devaluation to N683.48 as of June 14, 2023.

In a circular issued by the CBN on Wednesday, June 14, 2023, the bank said all exchange rates in Nigeria will now follow the ‘willing buyer, willing seller arrangement at the I&E window.

The CBN statement said: “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 (2) decimal places.”

Emefiele introduced the I&E window to deepen liquidity

According to the statement signed by the bank’s Director of Financial Markets, Angela Sere-Ejembi, the CBN will continue to quote the weighted average rate of transactions from the day before at the trading window.

TheCable reports that the I&E window was introduced by the suspended governor of the CBN, Godwin Emefiele, to improve the foreign exchange market instruments, deepen the liquidity, and ensure prompt execution and settlement of all forex transactions.

The CBN dropped its official rate to adopt the rates on the I&E window in 2021.