The Central Bank of Nigeria (CBN) has given Nigerian commercial banks the authorization to engage in forex trading at any rate, according to reports. This development follows the recent suspension of Godwin Emefiele as the Governor of the CBN. The decision implies that banks now have the freedom to sell forex based on market-determined rates, indicating a shift towards a freely floating exchange rate system in Nigeria. This move aligns with President Bola Tinubu's pledge to unify the multiple exchange rates prevalent in the market. However, official confirmation is expected later in the day with the availability of data from the Financial Markets Dealers Quotations (FMDQ). Sources have noted that trades are currently taking place at rates as high as N750/$1. In contrast, on the black market, the exchange rate has reached as high as N773/$1 for "inflows," representing currencies sold over the wires. Last week, President Bola Tinubu surprised Nigerians by ordering the immediate suspension of CBN Governor Godwin Emefiele, citing an ongoing investigation and planned reforms in the country's financial sector as reasons for the suspension. As a result, the Deputy Governor (Operations Directorate), Mr. Folashodun Adebisi Shonubi, has been appointed as the Acting Governor of the CBN until the investigation and reforms are concluded. Emefiele assumed office in 2014, succeeding Lamido Sanusi, who was also suspended from office by President Goodluck Jonathan prior to the expiration of his tenure.
