EconomyMoneyNigeriaCBN Devalues Naira, Adopt NAFEX

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Naira now stands at 410.25 for a dollar with the adoption of the Nigerian Autonomous Foreign Exchange (NAFEX) rate — weakening by 8 percent.

The adoption of NAFEX by the Central Bank of Nigeria (CBN)  implies that the official exchange rate will be determined by the relatively flexible window.

The CBN had introduced the I&E window in 2017 to improve foreign exchange market mechanisms, deepen market liquidity, and ensure prompt execution and settlement of all FX transactions.

The NAFEX window is a market trading segment for investors, exporters and end-users that allows FX trades to be made at a market-determined rate.

Nigeria operates multiple exchange rate windows ranging from the I&E (NAFEX) window where forex is traded between exporters, investors, and purchasers of forex, the SMEIS window where forex is sold to importers, and the BDC window which is where forex is sold to retailers.

Beloved John (Staff Writer)

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