Nigeria's commercial banks will set the first exchange rate of the naira versus the dollar when the currency is allowed to float freely on Monday after the central bank abandoned its dollar peg, A senior banking source told Reuters on Friday, after the CBN had on Wednesday assured that it would float the national currency on Monday.
Reuters report that in their first detailed guidance, CBN officials told bank chief executives at a meeting on Friday that lenders would set the first naira rate to the dollar based on demand without intervention from the central bank.
The report also said that CBN Governor, Godwin Emefiele was at the meeting and confirmed that commercial banks will determine the market rate on Monday, adding that the central bank officials also told the bankers it did commit itself to clearing up a backlog of hard currency estimated at around $4 billion but will intervene if needed.
It also said that the central bank would open up licenses for primary market dealers beyond the initial target of eight to 10 participants that it had announced on Wednesday.
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