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ProfRem
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An economist and Managing Director and Chief Executive, Financial Derivatives Company Limited, Mr. Bismarck Rewane has said that the new Central Bank of Nigeria policy on forex regulation is a move in right direction.
Mr. Rewane, according to New Telegraph wondered why it had taken the apex bank this long to effect these changes. He said: “If you want to unify the exchange rate, why did it take this long? We have N400 per dollar for BDCs, another rate for interbank and another for export proceeds.
“This latest development is a sub-optimal path to ultimate convergence of the currency.” Analysts say the CBN, which has been under pressure from Buhari to maintain a strong exchange rate even at the cost of economic growth and investment, was testing the waters for a possible broader devaluation in the near future.
“I think this is the begin-ning of a process to a more flexible forex system,” said Rewane, a leading economist. “There is panic. The system has collapsed. Dollars have disappeared at exchange bureaux at airports.”
See video:
Mr. Rewane, according to New Telegraph wondered why it had taken the apex bank this long to effect these changes. He said: “If you want to unify the exchange rate, why did it take this long? We have N400 per dollar for BDCs, another rate for interbank and another for export proceeds.
“This latest development is a sub-optimal path to ultimate convergence of the currency.” Analysts say the CBN, which has been under pressure from Buhari to maintain a strong exchange rate even at the cost of economic growth and investment, was testing the waters for a possible broader devaluation in the near future.
“I think this is the begin-ning of a process to a more flexible forex system,” said Rewane, a leading economist. “There is panic. The system has collapsed. Dollars have disappeared at exchange bureaux at airports.”
See video:
