Following reports of the Naira’s possible free float on Wednesday, foreign exchange traders on the parallel market became nervous.
This comes as commercial banks and forex market participants announced that the apex Bank has given them permission to sell forex freely at a market-determined rate.
President Bola Ahmed Tinubu emphasized the importance of harmonising the country’s foreign exchange rates in his inaugural speech.
Despite the fact that the Naira is still trading at N760 to the dollar on the parallel market, currency traders say they are unsure which way the market will swing in the coming days in light of the latest news.
We bought at N760 on Tuesday but now we are selling at N760. Which is almost a loss. So we are careful until we know which direction the market is going, a parallel market trader told LEADERSHIP on Wednesday.
The initial understanding of this message is that banks can now sell forex at market-determined rates, suggesting Nigeria is now operating a freely floating exchange rate.
However, official confirmation will have to come later in the day when data from the FMDQ is available.
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