The Central Bank of Nigeria announced a unification of all official exchange rate windows on the 14th of June 2023 leading to a plummeting of the exchange rate.
A total of $788 million has been recorded as cumulative turnover in the official Investor & Exporter window, a week after the unification of the exchange rate was announced.
The exchange rate between the naira and dollar has experienced volatility since its introduction a week ago falling 29% to N664/$1 on the first day. It fell further to N702/$1 before closing the week slightly at N664/$1.
The I&E Window closed on Monday at N770.3/$1 and on Tuesday, June 20th at N756.6 continuing with the volatility that we have experienced since the unification started.
According to the central bank website, the external reserve is about $ 34.49 billion down from $34.65 billion on the day the unification was announced.
The Central Bank of Nigeria’s efforts to enhance transparency and liquidity may have caused exchange rates to fluctuate as market forces adapt to the new policy framework.
The guidance includes allowing all visible and invisible transactions to be eligible for the Investors’ and Exporters’ window. This will grant unrestricted access to funds in ordinary domiciliary accounts, and permitting cash deposits not exceeding $10,000 per day or its equivalent via telegraphic transfer.