Indications are beginning to emerge that the CBN may well introduce the a dual exchange rate system where the Naira will trade at a fixed price and along a band at the interbank. According to media sources, the CBN is likely to devalue the naira at the official rate as well as allow the interbank market to sell at a “market determined” rate that will like trade along a band. It is sort of like what is currently obtainable in the downstream sector where petrol sells between a price band of N135 – N145.

Black Market operators interviewed by Bloomberg have also opined that when the CBN eventually devalues this week the black market rate for the dollar may drop to as low as N300 due to increased supply.



“The naira might trade around 300 to a dollar on the black market after the announcement, because we expect supply to improve,” Aminu Gwadabe, president of the Bureau de Change Operators of Nigeria.

A lot of speculators have taken position in anticipation of a devaluation increasing the scarcity that currently exist. The dollar sold for N369 to the dollar up from N366 on Friday. It appears however, that most Nigerians are speculating at the wrong end of the trade forgetting that the black market has already factored in demand and supply in determining the price of the dollar as such there could be little effect on the price compared to the price at the official window where it is likely to be also devalued. The Interbank market is also essentially trading at prices above N300 confirming also that the market has priced it effects of our current economic situation.

http://nairametrics.com/naira-may-sell-at-n3001-when-the-cbn-devalues-this-week/

All speculations, rumours and stories!

how does it help buharis ear

that it works on paper doesn't guarantee working in real life. Nigeria is a complex economic society, Strong circles in the society are willing to sabotage the plan to retain their selfish gain out of the society while impoverishing the rest of Nigerians.

Nigeria is my country, Low Patriotism

after going round in circles, its back to devaluation at last?

With our mumu economic policy its just around failed promise

I thought the dullard said he will not devalue the currency because he is yet to be convinced of its usefulness. Now that the currency has crashed and everything has tumbled down,he ran away to London and left the dirty job to his vice president. The truth is this move is coming too late,any official devaluation now will only crash the currency further most likely to 400naira and above because the government hasn't got the dollars to back the demand . After officially devaluing the currency ,cbn still doesn't have the dollars to sell to the banks .

Who knows what parallel market will sell then? Maybe N500/$1 . Baba God come to our rescue!