The naira is currently trading at N750-N755 per dollar at the investors and exporters (I&E) window on Wednesday.
Sources familiar with the matter told newsmen that the Central Bank of Nigeria (CBN) has directed commercial banks to sell forex freely at market-determined rates.
Analysts believe that the development will bring the needed transparency in the forex market and address the scarcity that has put pressure on the local currency over the years.
Analysts at Proshare, a market analyst and financial information news medium, said that merger will lead to a depreciation of the local currency in the official market, but the parallel market should appreciate.
“We can merge the different official exchange rates. The merging of the rates should, according to Proshare models, lead to a depreciation of the local currency in the official market, but the parallel market should see an appreciation. The official rate could fall to between N600/$ and N650/$.
The parallel market rate should trend down towards this range. Remember most market transactions occur in the unofficial market thereby, mitigating the potential inflationary impact of the official exchange rate adjustment”, it said
The development is being tracked.