Naira exchange monitor

Pending when the CBN rolls out the
details of the new flexible exchange rate
policy, which is a monetary system that
allows the exchange rate to be determined
by supply and demand, the nation’s
currency naira is still pegged at the
official exchange rate regime of N197/
dollar.

However, the implication of the flexible
exchange rate policy is that with a high
demand for the dollar in Nigeria, there is
every likelihood that the naira will
experience a further decline in the
coming months.
The policy, which throws naira into open
market, also paves way for one to walk
into the bank and ask to buy forex at the
market rate, hence, putting pressure on
black market and Bureau de Change
operators.
But even with the CBN yet to release a
new guideline on the management of
foreign exchange in the country, the
naira is already facing the heat as it has
weakened slightly in the parallel market.