It appears that the Central Bank of Nigeria, CBN, has instructed banks to trade foreign currency through the Investors & Exporters window at any exchange rate based on willing buy/willing seller agreements.
In response the I&E window exchange rate rose sharply to N610 per dollar, as at N12:50 pm from N471.67 yesterday night.
Though the CBN is yet to issue a statement to this effect, two banking executives however confirmed to Vanguard that it is true that the CBN has given the directive to the banks.
Impact
Meanwhile, an investment banker and the Co-founder, Comercio Partners, Nnamdi Nwizu, said the immediate impact of the directive is enhanced foreign exchange inflow into the economy and further rise in the inflation rate, as the I&E window exchange rate rises aggressively as already seen today.