Central Bank of Nigeria has adopted the NAFEX/I&E Window exchange rate on its website, ditching a multi-decade use of government-determined exchange rate.
The CBN reported an official exchange rate of N410.25/$1and referenced it as “NAFEX Exch, Rate as at Monday.
The apex bank had on May removed the exchange rate of N379/$1 from its website homepage conforming with the bank’s policy that the NAFEX rate is now the default reference exchange rate for official and legitimate transactions.
Since the Central Bank last adjusted the exchange rate in August 2020, it has retained the exchange rate of N379/$1 on its homepage which in the past, represented the official exchange rate.
The exchange rate displayed on the website has historically been referenced as the official exchange rate of the country.
However, all government transactions since 2021 have been converted using the prevailing exchange rate at the official NAFEX window confirming that the erstwhile official exchange rate of N379/$1 was dead.
The CBN’s adoption of NAFEX on its website confirms this is now Nigeria’s official exchange rate, meaning that all exchange rate transactions involving the public and the private sector will now reference the prevailing NAFEX rate as its official exchange rate.
The NAFEX which is an acronym for the Nigerian Autonomous Foreign Exchange Rate Fixing Methodology was introduced by the current CBN in 2017 in response to the currency crisis at the time.