…New President Vows To Unify Exchange Rate
Nigeria’s unofficial foreign exchange market reacted positively on the inauguration day of Bola Ahmed Tinubu as Nigeria’s 16th President.
The black market opened on Monday at N763 against the US dollar but dropped by N9 at the close of trade.
Prices at Zone 4, a popular Bureau de Change hub in Abuja closed between N755 and N754 against the dollar, according to THE WHISTLER.
The naira has been trading low against the dollar over low foreign exchange earnings.
But Tinubu said in his first inaugural speech that he will unify the exchange rate.
Nigeria has four FX windows: the Investors’ & Exporters’ FX Window (“I&E FX Window”), a market trading segment for investors, exporters and end-users.
The secondary market intervention sales retail window, the small and medium-size enterprises (SME) window, and the window for invisibles.
The blackmarket for the BDC dealers is another unofficial window with a huge margin.
He said, “Monetary policy needs thorough housecleaning. The Central Bank must work towards a unified exchange rate.
“This will direct funds away from arbitrage into meaningful investment in the plant, equipment and jobs that power the real economy.
“We shall ensure that investors and foreign businesses esses repartiate their hard earned dividends and profits home.”
