The Central Bank of Nigeria has announced that it will reveal details of its much-anticipated Flexible Exchange Rate policy on Wednesday according to a spokesperson for the bank. Nairametrics had reported earlier in the week that details of the policy will be revealed this week.
The policy is expected to be announced by the CBN Governor via a press conference which is expected to be viewed world-wide and could be streamed via the CBN’s website www.cenbank.gov.ng. Time for the press conference is 2pm.
The CBN Governor Godwin Emefiele announced at the last monetary policy communique that it will adopt a new flexible exchange rate policy and promised to reveal details soon. Nigerians and foreign investors interested in investing in Nigeria have been anticipating this announcement. The delay has heightened speculations at the parallel market with the Naira trading as high as N368 to the dollar.
Black market operators believe that the Naira could appreciate in value to N300 to $1 if the CBN officially devalues the Naira. Speculations are also rife that the CBN could reintroduce a dual exchange rate system that will see the interbank trade at an official window while the CBN sticks to its official peg. The disparity between the fixed peg and the interbank is also expected to be narrowed after this announcement suggesting that the CBN will shift its official rates upwards.