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TheCable understands that the decision was taken because exchange rates change daily and nobody uses the rate on CBN website.
This implies that the importer and exporter window (I&E) is now the default reference exchange rate for official transactions in the country.
The I&E FX window is the market trading segment for investors, exporters and end-users that allows for FX trades to be made at exchange rates determined based on prevailing market circumstances.
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The window was
introduced in 2017 by the CBN to improve foreign exchange market mechanisms, deepen market liquidity, and ensure prompt execution and settlement of all fx transactions.
In the Importers and Exporters window on Friday, April 23rd, 2021, the exchange rate between the naira and the US dollar closed at N410/$1. On Friday, the Naira remained stable at the Nigerian Autonomous Foreign Exchange (NAFEX) window, closing at N410 to the dollar, the same rate as on Thursday, April 22nd, 2021. On Friday, the naira stayed steady on the parallel market, closing at N485/$1. According to a research paper released by the CBN, Nigerians are shunning the naira and acquiring foreign currencies to shield their savings from naira fluctuations and inflation. On Friday, April 23, 2021, the price of the world’s most common digital instrument fell, although Nigeria’s external reserve continued to fall.
Wednesday, 28th April 2021: The exchange rate between the naira and the US dollar closed at N411.25/$1 at the Importers and Exporters window.
Naira appreciated on Wednesday, at the Nigerian Autonomous Foreign Exchange (NAFEX) window, as the rate closed at N411.25 to a dollar. This represents a 42 kobo gain when compared to the N411.67/$1 that was recorded on Monday, 26th April 2021.
However, the naira remained stable at the parallel market to close at N485/$1 on Wednesday. This was the same rate that was recorded the previous day.
The naira gained at the official window despite the low liquidity at the forex market with dollar supply dropping by 30.7%.
Friday, 23rd April 2021: The exchange rate between the naira and the US dollar closed at N410/$1 in the Importers and Exporters window.
Naira maintained stability on Friday, at the Nigerian Autonomous Foreign Exchange (NAFEX) window, as the rate closed at N410 to a dollar, the same rate that was recorded on Thursday, 22nd April 2021.
Also, the naira remained stable at the parallel market to close at N485/$1 on Friday. This was the same rate that was recorded the previous day as Nigerians shun the naira and are accumulating foreign currencies to protect their wealth from naira volatility and inflation, according to a research paper in a journal published by the CBN.
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