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LequteMan
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The Central Bank of Nigeria, CBN, on Tuesday, removed the official peg on the naira dollar exchange rate to allow a flexible currency regime.
The announcement was made by CBN governor, Godwin Emefiele, who declined to give further details about the policy U-turn. According to him, things would be made clearer after the CBN had another MPC meeting, soon.
The CBN had fixed the exchange rate at N199 to the greenback at the official market. while realistically, citizens can only get it at the parallel market, which hovers around N340 per dollar at the moment.
Related: CBN Announces 'Technical Devaluation' Of The Naira
Here are three reasons why the CBN decided to remove the official peg on the naira-dollar exchange rate.
1. To reduce the gulf between the official and the black market
2. To boost local manufacturing and exports
3. To stave off a recession.
READ: What CBN's Latest Announcement on Naira-Dollar Exchange Rate Means
The announcement was made by CBN governor, Godwin Emefiele, who declined to give further details about the policy U-turn. According to him, things would be made clearer after the CBN had another MPC meeting, soon.
The CBN had fixed the exchange rate at N199 to the greenback at the official market. while realistically, citizens can only get it at the parallel market, which hovers around N340 per dollar at the moment.
Related: CBN Announces 'Technical Devaluation' Of The Naira
Here are three reasons why the CBN decided to remove the official peg on the naira-dollar exchange rate.
1. To reduce the gulf between the official and the black market
2. To boost local manufacturing and exports
3. To stave off a recession.
READ: What CBN's Latest Announcement on Naira-Dollar Exchange Rate Means
