The Central Bank Governor Godwin Emefiele today announced that the CBN was adopting a “flexible foreign exchange rate” regime in an apparent admission of policy failure and a belated response to the current economic disaster that the country is in.

The CBN Governor in a press briefing following the conclusion of the CBN Monetary Policy Committee meeting explained that “The MPC (Monetary Policy Committee) voted unanimously to adopt a flexible exchange rate policy to restore the automatic adjustment properties of the exchange rate,”.

He also said that “retain a small window for funding critical transactions” and that “details of operations of the market would be released by the central bank at the appropriate time”.


The adoption of a “flexible exchange rate” regime is basically the CBN allowing the Naira to float against the dollar at the interbank, rather than holding on to a fixed peg.

In what our analysts refer to as “semi-float” the CBN stopped shy of announcing a full float because it still resolved to retain the official exchange rate of N199 which it says it will use for funding “critical transactions.”

What this means however is that buyers of forex for holiday, school fees, medical tourism, online payments etc. purposes, will have to source for forex from the interbank at market determined rates and will no longer be able to buy forex at N199 or whatever official rate the CBN decides to adopt.

So no more round tripping, no more arbitrage (at least except you are Buhari or Emefiele or whoever they sell to at N199). The CBN has basically shut the window to all Nigerians
looking to buy dollars at official rates.

http://nairametrics.com/official-cbn-floats-the-naira-what-it-means/

In one year, the economy has crashed under Buhari.

This is actually the only important decision this new government has made.
The question to be asked now is? What happens to the 27 billion Dollars foreign reserve now that it is no longer needed?

I was just looking at my phone screen as if an infinix hot2 can just transform into iPhone 6s.
but seriously, what is all this rubbish, call the man...

Buuharriiiiiiiiiiiiiiiiiiiii, come over here now before I count 4!!!

Oh God, help Nigeria and Nigerians. At first, I thought Buhari had a plan, but now it is clearly written on the wall.

Some people should get ready for more suffering, cus I and my family shall prosper even when the economy has crashed.
Survival of the fittest mode activated.