At last, the naira leaped against the American dollar today
(Monday) after the federal government allowed the forces of demand and supply
to determine its value. According to sources “Trading started at 9:00 am (0800
GMT) this morning with all the 24 commercial banks participating. The offer is
249 to 265 naira to the dollar,”
Though the CBN is working out modalities to ensure that supply
and demand were matched, the local currency was quoted at about 262.50 against
the USD. Financial analyst say the local currency may probably settle for about
250 compared with what is obtainable in the black market. The federal
government had pegged it at 197 – 199 against the USD in March 2015, even as
oil exporting countries have devalued their local currencies due to the global
crude prices. The President Muhammadu Buhari led government has earlier that
the local currency will not be killed by allowing it devalue. However, the CBN
governor Godwin Emefiele announced last week that currency market will
henceforth become “purely market driven” due to the escalating inflation, slow
growth, and the weakening naira and foreign exchange deficiencies
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