On Wednesday’s Investor & Exporter FX window, the naira strengthened against the US dollar, closing at 793.70/$.
The local currency had traded at N825 on the I&E window a week earlier.
According to FMDQ estimates, trade began at 778.07/$ on Wednesday and reached a high of 853/$ before closing at 793.70/$.
As of the close of trading, the trading had a total turnover of $87.19 million.
According to certain Bureau de Change operators who communicated with our correspondent, the dollar was bought and sold on the parallel market at N820 and N825, respectively.
In a study titled ‘Understanding the Operational Changes in the Foreign Exchange Market,’ the banking regulator explained its new forex operation.
It stated that by compressing all parts of the FX market into the I&E window, all qualified FX transactions in the market would only be done through the I&E window, as all other windows ceased to exist.
“The I&E market operates on a willing buyer, willing seller system,” the CBN explained. “An entity with demand for FX seeks out another entity with FX to sell at an agreed price through an authorized dealer.”
The willing buyer and willing seller model explained the rates where both sides freely agreed upon the rates.
The CBN said PTA, BTA, and other invisible transactions would continue to be accessed through the banks at the prevailing market rate.
