Pending when the CBN rolls out the details of the new flexible exchange rate policy, which is a monetary system that allows the exchange rate to be determined by supply and demand, the nation’s currency naira is still pegged at the official exchange rate regime of N197/dollar.
However, the implication of the flexible exchange rate policy is that with a high demand for the dollar in Nigeria, there is every likelihood that the naira will experience a further decline in the coming months.
The policy, which throws naira into open market, also paves way for one to walk into the bank and ask to buy forex at the market rate, hence, putting pressure on black market and Bureau de Change operators.
But even with the CBN yet to release a new guideline on the management of foreign exchange in the country, the naira is already facing the heat as it has weakened slightly in the parallel market.
According to our BDC source in Katsina, the naira has crashed slightly to N342/$1 as against the N337/$1 rate it was on Tuesday, May 24.
He said: “The naira now trades for N342 to a dollar in the black market. The rate has been far from consistent in recent times. Many shops don’t even have dollar to sell because there is high demand for it.
“We hope with CBN’s new flexible exchange policy, investors can go to other countries to buy dollars and come back home to trade it with our naira to invest. At least this will help our economy but for me, I’m considering changing my line of business.”
Nigeria continues to suffer from numerous economic headaches which include poor crude prices and the uncertainty in foreign exchange.
The nation is also faced with a myriad of problems like attacks on oil installations, an unprecedented scale in the prices of commodities and fuel scarcity.
Meanwhile, you can check out NAIJ.com’s bureau de change ‘market’ here for the best rates on foreign exchange.
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