Finally the end of speculations of the official value of naira
has come to its abrupt end, as the value of the Nigerian currency was today
devalued to the dollar as the Central Bank of Nigeria announced a flexible
foreign exchange regime that would see the country abolishing the dual exchange
rate regime.
Under the new plan, the official exchange rate of the
naira will exist in a "single flexible window," which will likely be
determined by market forces.
President Muhammadu Buhari, who is currently on medical
vacation in the United Kingdom, had initially opposed any form of devaluation,
but his hands appear to have been forced by the necessity of borrowing
badly-needed funds to finance a budget hampered by a debilitating shortfall in
oil production, SaharaReporters report.
Mr. Emefiele announced a series of measures to manage the
new forex policy; these includes the introduction of Forex Primary
Dealers, a Futures Market to enable end users to lock down rates and 12 other
measures to ensure transparency and stability of the new market.
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