Central Bank of Nigeria floats the naira

Ugo Okoro

The Central Bank of Nigeria on Wednesday announced that it would as from next week, begin market-driven foreign currency trading.

It had since last year ran a fixed exchange rate policy.

The naira had been pegged at N197 to the U.S. dollar.

Central Bank Governor, Godwin Emefiele said interbank trading would begin on Monday.

“We will introduce foreign exchange primary dealers who would be registered by the CBN (central bank) to deal directly with the bank for large trade sizes on a two-way quote basis,” Emefiele said.

About 10 primary dealers are expected to supply the interbank market with dollars, with a minimum of $10 million.