It may not be clear to many what the CBN is trying to accomplish here.

But the whole point is that people can now buy and sell dollars at rates other than the black market or the ones set by the CBN.

CBN hopes the move will increase the amount of dollars available in the market.

The apex bank on Monday unveiled the new forex window allowing investors to engage in foreign exchange trading at rates the buyers and sellers set.

This means that people or businesses who need dollars to repay loans, pay dividends, repatriate capital or settle trade-related obligations will be eligible for the new trading system, according to central bank circular released on Monday.

Trading will take place by phone, at rates set by willing sellers and willing buyers. The central bank will not provide the funds, but it will step in to buy or sell to keep the market orderly.

"The Central Bank of Nigeria, in a continuing effort to deepen the foreign exchange market and accommodate all FX obligations, hereby announces a special window for investors, exporters," the bank said in the circular.

“The purpose of this window is to boost liquidity in the FX market and ensure timely execution and settlement for eligible transactions," the circular added.

Nigeria has at least five exchange rates: the official rate, the black market, a rate for Muslim pilgrims going to Saudi Arabia, a retail rate set by licensed exchange bureaus and a rate for foreign travel and school fees.

It said FMDQ OTC Securities Exchange will poll buying and selling rates to help with price discovery.

But don’t get this wrong, this is not a float as the CBN will have to intervene from time to time, either to buy or sell.

Analysts believe this is to ensure that participants do not manipulate prices by creating artificial scarcity. And since the CBN is perhaps the largest supplier of dollar in the market, it can indirectly influence the direction of prices and curtail market mischief.