Naira floats at I&E rate to N755/$

Nigeria has officially floated its naira currency after years of sticking with a hard peg that spooked investors and drained dollars from the economy.

The Investors & Exporters (I & E FX) window is now quoting at a range between N750 -N755 against the dollar.

According to a report by BusinessDay on Wednesday, the market rate based on a willing buyer and a willing seller is currently being quoted by banks who sent out emails to some customers confirming the change.

The rate could go as high as N800 by the end of Wednesday, according to some bankers, who say the next move now should be to prioritise supply of dollars to support the naira float.

Naira gains 0.18per cent at official market after Central Bank of Nigeria (CBN)’s shakeup.

Present Bola Tinubu in his inaugural address had expressed desire to unified exchange rate.

He had said: “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.

“Interest rates need to be reduced to increase investment and consumer purchasing in ways that sustain the economy at a higher level.”

According to industry experts and multilateral lenders like the International Monetary Fund (IMF), the harmonisation of the rates and removal of subsidy will improve the attraction of the Nigerian economy to foreign investors and also help the government channel useful funds into more productive ventures like infrastructural investment, education and healthcare.