Quote=“If the CBN does not spell out the details of the new policy and make the market wider for the participation of all stakeholders, the Naira will be in trouble; for instance the exchange rate closed N345 yesterday, today (Wednesday) it hit N347 (to the Dollar) because of the pronouncement.”


Sam Diala

Strong indications have emerged that the flexible foreign exchange (Forex) policy announced by the Central Bank of Nigeria (CBN) after its bi-monthly Monetary Policy Committee (MPC) meeting last Tuesday will trigger a new wave of crisis in the market.

Concerns are also being expressed about the failure of the CBN Governor, Godwin Emefiele, to announce modalities for the implementation of the newly created “official exchange window” which analysts say was shrouded in uncertainty and could serve as platform for unethical practices.

The Acting President, Association of Bureau de Change Operators of Nigeria (ABCON), Muhammed El-Amin, told The UNION that the new floating exchange rate policy introduced by the apex bank would not go a long way in solving the forex crisis as it was intended.

Instead, he said, it would escalate the crisis and make the Naira weaker in value in relation to the US Dollar, thereby spiking inflation, cost of production and putting greater pressure on the local currency.

Read more@http://www.nairausd.com/2016/05/new-forex-policy-may-worsen-nairas-woes.html?m=1