The Nigeria Naira slumped further to the dollar after closing at 770.38/$ at the end of trading on the investor & exporter forex window on Monday.
According to figures obtained from the FMDQ on Monday, the trading rates had closed at N686.96/$ on Friday.
Trading opened at ₦703.50/$ and hit a high of ₦799/$ before closing at ₦770.38/$.
The I & E forex window recorded a total turnover of $78.03m at the close of trading on Monday.
The Central Bank of Nigeria (CBN), last week directed Deposit Money Banks to remove the rate cap on the naira at the I&E window to allow for a free float of the national currency against the dollar and other global currencies.
The banking regulator explained its new forex operation in its report on ‘Understanding the operational changes to the foreign exchange market’.
It claimed that by combining all FX market segments into one window, the I&E window became the only window through which qualifying FX transactions could be made because all other windows were eliminated.
Read Also: I Will Revisit CBN’s Naira Redesign Policy, Tinubu Vows
‘The I&E market functions by a willing buyer, willing seller system, where an entity with demand for FX seeks out another entity with FX to sell at an agreed price through an authorised dealer,’ the CBN stated.
On the concept of the willing buyer and willing seller model, it explained that the rates were mutually agreed upon by both parties.
The CBN said PTA, BTA, and other invisible transactions would continue to be accessed through the banks at the prevailing market rate.
The President of Nigeria, Bola Tinubu has vowed to revisit the naira redesign policy of the Central Bank of Nigeria (CBN) which had put many Nigerians in a difficult situation earlier in the year.
Tinubu, who said this in his inaugural speech in Abuja, however, assured that his administration would treat both the old and the new naira notes as legal tender. He said that the policy was harshly applied by CBN, given the number of unbanked Nigerians.