CBN Releases New Guidelines to Banks on Forex Trading

• The Central Bank of Nigeria has reportedly issued a new directive to commercial banks regarding foreign exchange (forex) trading.
  
• According to reports on June 14, the apex bank has granted banks the freedom to engage in forex trading at any rate they deem fit.
  
• This announcement follows the recent suspension of the CBN Governor, Godwin Emefiele, by President Bola Tinubu.

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The Central Bank of Nigeria (CBN) granted commercial banks the autonomy to engage in foreign exchange trading at their desired rates.

Sources indicate that commercial banks and forex market dealers can now freely sell forex at a rate determined by the market.

It is reported that exchange rates have already reached as high as N750/$1.

Traders and industry insiders have confirmed that Nigeria has transitioned to a freely floating exchange rate system, and observers await the closing of trading at the FMDQ for official data to validate this change.

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At the time of reporting, the apex had not officially confirmed this new development.

However, it is anticipated that an official statement will be released by the CBN before the end of the business day, providing further clarity on the matter.