Lagos (Lagos State) – The naira on Wednesday depreciated further against the dollar at the parallel market, the News Agency of Nigeria (NAN), reports.
The currency of the biggest economy in Africa lost N5 to exchange at N365 to the dollar, from N360 it exchanged on Monday.
The pound sterling and the euro traded at N510 and N407 respectively at the market.
Meanwhile the Central Bank of Nigeria (CBN), in a couple of hours ago, released guidelines for the operation of a flexible exchange rate, paving way for the jettisoning of the fixed exchange rate.
Traders at the market said they were studying the new guidelines to see how it would affect the market.
The CBN said management of foreign exchange (FX), will be determined by the market and FX primary dealers with a minimum balance of 10 million dollars
“The market shall operate as a single market structure through the inter-bank and autonomous window.
The Exchange Rate would be purely market-driven using the Thomson-Reuters Order Matching System as well as the Conversational Dealing Book.
“The CBN would participate in the market through periodic interventions to either buy or sell FX as the need arises.
“To improve the dynamics of the market, we will introduce Forex Primary Dealers (FXPD), who would be registered by the CBN to deal directly with the bank for large trade.
“These Primary Dealers shall operate with other dealers in the Inter-bank market, amongst other obligations that will be stipulated in the Foreign Exchange Primary Dealers (FXPD) Guidelines’’, the CBN said. (NAN)
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