The naira traded at 400 to the United States dollar in deals for investors on Monday, traders told , two weeks after the Central Bank of Nigeria introduced the Investors FX Window
The window was designed to allow investors, trade in the currency at market-determined rates.
Trading sources said investors were demanding rates above N400/dollar while locals were quoting rates as low as N350/dollar.
The sources said traders held a conference call last Friday with market regulator FMDQ OTC Securities Exchange to discuss the wide range of quotes on the naira for investors, although the meeting did not produce any resolutions.
Traders, worried about illiquidity in the currency market despite making the exchange rate market-determined for investors, said no resolution was reached at the meeting.
“We have done deals around N400/dollar levels,” one trader said, adding that, “Some of the off-shores investors are insisting on N400/dollar.”
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