By Kunle Adedoyin
The Central Bank of Nigeria (CBN) has released its hold on the Naira, with the decision to make ‘the Naira exchange rate is market-determined’. This was stated on its website.
Hence, the currency exchange rate will be determined by market demand and supply.
Sources inside the apex bank revealed that this decision was carried out at the end of May and described it as a managed float as the bank intends to still carry out interventions as it deems appropriate.
This is similar to its actions in June 2016 when the exchange rate was adjusted to N305 from the official N199/$ rate.
At present, the bank makes forex available to various segments of the market to meet demand.
It also introduced an Investors and Exporters Window to provide forex for industrial purposes.
Emmanuel Onyeme, Public Relations Officer of the Association of Nigeria Licensed Customs Agents (ANLCA) at Tin Can Island Port, had confirmed the development saying the rates were effective since Monday, June 10.
President Muhammadu Buhari had initially kicked against devaluing the currency saying the action was synonymous to killing the Naira.
“I’m not an economist neither a businessman, I fail to appreciate the economic explanation. How much benefits have we derived from naira devaluation in the past?” he had said.