What will a Naira devaluation mean for fintechs in Nigeria? (technext24.com)

This is because the CBN sometime in April 2017, opened a similar windowfor investors and exporters.

Tagged Investors amp Exporters FX Window, CBNs Director in charge of Financial Markets at the time, Alvan Ikoku, said the new window would boost liquidity in the forex market and ensure timely execution and settlement for eligible transactions.

This marketdetermined exchange rate may differ from the CBN official exchange rate.

Earlier today, there were speculations that the Central Bank of Nigeria (CBN) was set to devalue the Nations currency Naira, to N631 to the dollar from N461.6 it sold at the Importers and Exporters (IampE) window the previous day.

Although those rumours about the naira devaluation have since been debunked by the Central Bank of Nigeria, the purported news is coming barely 48 hours after President Bola Ahmed Tinubu announced the plans of the federal government to unify the countrys exchange rate to stimulate the economy.

The apex bank described the report as the imagination of the newspaper, and said the Investors amp Exporters (IampE) window traded at 465/1 on June 1.

Although the CBN can sometimes open such a window, we can categorically say that the IampE window is not new and isnt directly linked to the nairas official value against the dollar.

In this window, two entities may wish to trade and exchange a dollar for naira above the CBN official exchange rate.

When both parties act in this way, it does not necessarily imply that the official exchange rate set by the CBN has changed.

Keypoints

• Technext Newsletter
  • What we know
  • What does the Naira devaluation mean
  • What it means for the fintech industry now