Following the suspension of Godwin Emefiele as the Governor of the Central Bank of Nigeria (CBN), Nigerian commercial banks have received approval from the CBN to engage in foreign exchange trading at their discretion.
This announcement suggests that banks now have the freedom to sell foreign currency at rates determined by the market, indicating a shift towards a freely floating exchange rate system in Nigeria.
This move aligns with President Bola Tinubu’s commitment to unify the multiple exchange rates prevalent in the market. However, official confirmation will be awaited, with data from the FMDQ (Financial Markets Dealers Quotations) expected to provide further clarity.
Sources indicate that trades are currently taking place at rates as high as N750/$1. Additionally, in the black market, the exchange rate reached as high as N773/$1 for “inflows,” representing dollars or other currencies sold through informal channels.
President Bola Tinubu surprised Nigerians on June 9 when he immediately suspended the CBN Governor, Godwin Emefiele, from office. The suspension was attributed to an ongoing investigation and planned reforms in Nigeria’s financial sector, as disclosed by Willie Bassey, the Director of Information in the Office of the Secretary to the Government of the Federation.
As a result, Emefiele has been instructed to hand over his duties to the Deputy Governor (Operations Directorate), Mr. Folashodun Adebisi Shonubi, who will act as the interim Central Bank Governor until the investigation and reforms are concluded.
Emefiele assumed the position of CBN Governor in 2014, succeeding Lamido Sanusi, who was also suspended from office by President Goodluck Jonathan a few months before the end of his tenure under controversial circumstances.
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