The forex market is segmented with multiple exchange rates, with the Investors and Exporters window (I&E FX) window as the most important rate.
In a report, Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said the Central Bank of Nigeria (CBN), most exporters and investors were the regular users of the window.
He said about 60 per cent of forex transactions were traded on this window. “It serves not only as a source of price discovery but also a barometer for measuring potential and actual CBN intervention in the market. Some of the exchange rate determinants are balance of payments, capital inflows and trade balance.
The Naira fell to a low of N610/$ at the parallel market due to increased demand pressure before gaining slightly to close the month at N607/$.