The naira gained slightly against the United States dollar on the Investor & Exporter forex window on Wednesday, it closed at 793.70/$.
Recall that the local currency had earlier traded at N825 a week earlier on the I&E window.
According to figures obtained from the FMDQ, the trading, which commenced at 778.07/$ on Wednesday reached a high of 853/$ before closing at 793.70/$.
The trading also recorded a turnover of $87.19m as of the end of trading.
Recently, the Central Bank of Nigeria, directed Deposit Money Banks to remove the rate cap on the naira at the I&E window to allow for a free float of the national currency against the dollar and other global currencies
The apex bank explained its new forex operation in its report on ‘Understanding the operational changes to the foreign exchange market’.
By collapsing all segments in the FX market into the I&E window, it said this meant all eligible FX transactions in the market would only be done via the I&E window, as all other windows ceased to exist.
“The I&E market functions by a willing buyer, willing seller system, where an entity with demand for FX seeks out another entity with FX to sell at an agreed price through an authorised dealer,” the CBN stated.
On the concept of the willing buyer and willing seller model, it explained that the rates were mutually agreed by both parties.
The CBN said PTA, BTA and other invisible transactions would continue to be accessed through the banks at the prevailing market rate.
Recently, the naira has witnessed a decline across the official and unofficial forex market segments following decision by the Federal Government to unify the nation’s multiple exchange rates and scrap the petrol subsidy regime.