CBN Moves to Rename I&E Market to NFEM as Naira Nears N1000/Dollar

• CBN says the Nigerian Foreign Exchange Market (NFEM) will replace the Investors and Exporters (I&E) window
• According to the CBN, the soon-to-be-replaced I&E window is the sole market it acknowledges
• The development follows speculations that the naira will trade for over N1,000/dollar

The official foreign exchange market, also known as the Investors and Exporters (I&E) window, would soon be recognised as the Nigerian Foreign Exchange Market (NFEM), Folashodun Shonubi, the acting Central Bank of Nigeria (CBN) governor, has said.

Shonubi revealed this to participants in the 16th Executive Intelligence Management Course (EIMC) at the National Institute for Security Studies in Abuja while delivering a Distinguished Personality Lecture on "Diaspora Remittances and Nigeria Economic Development".

This is coming amid a report of speculations that the naira trading above N900 will hit N1,000 per dollar in no time.

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Legit.ng had earlier reported that the CBN announced changes in the foreign exchange market to abolish the country's parallel and other forex markets.

NFEM to replace I&E window

The CBN established the I&E window in 2017 to provide investors, exporters, and end users with a market trading segment that enables foreign exchange trades at exchange rates determined based on current market conditions, ensuring efficient and effective price discovery in the Nigerian foreign exchange market.

Shonubi said in a report:

“We will rename the foreign exchange market, known as the I & E market, to the Nigerian Foreign Exchange Market, as it is the sole market we acknowledge.”

This is coming on the back of a report that the Nigerian naira recovered some of its lost value against the US Dollar in the Investors and Exporters (I&E) and the Peer-2-Peer (P2P) windows of the foreign exchange (forex) market on Friday, April 11, 2023.

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In the P2P market, used mainly by crypto traders, Legit.ng observed the naira also appreciated exchanged on Friday at N913 against the US dollar.

Despite CBN's currency float, naira loses N105 at black market, gains N12 on I&E window in July

The naira strengthened by N12.31 to N756.94 per dollar on the I&E window at the end of July 2023 from N769.25 per dollar traded on June 30th, 2023. However, the naira did lose N105 in the black market, Legit.ng earlier reported.

Also, the number of dollars transacted (turnover) in the Investors and Exporters (I&E) window of the foreign exchange market decreased by 21% in one month from $2.64 billion in June to $1.6 billion in July 2023, against the backdrop of the dollar shortage afflicting the economy.

Source: Legit.ng