The Central Bank of Nigeria today announced a flexible foreign exchange regime that would see the country abolishing the dual exchange rate regime. The value of the Nigerian currency was devalued to the dollar.
The Central Bank governor, Godwin Emefiele, speaking at a news conference in Abuja today, said under the new plan, the official exchange rate of the naira will exist in a "single flexible window," which will take off on June 20th. The announcement end months of speculation about the official value of the Nigerian currency.
The new policy effectively removes controls on the naira, and is expected to increase dollar supply and help the nation’s weak economy.
This means that a series of measures to manage the new forex policy will include the introduction of Forex Primary Dealers, a Futures Market to enable end users to lock down rates and 12 other measures to ensure transparency and stability of the new market.
He added that the 41 banned items from the list of items valid for forex in the Nigerian Foreign Exchange Markets remain banned and cannot access forex from the new window.
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