Timeline: Forex Decisions Taken By The CBN Since February 2017 (Updated April 10 2017)


Nairametrics| The reign of Godwin Emefiele as CBN Governor will perhaps go down in history as one of the most tumultuous and controversial ever. He has presided over a period where Nigeria has faced its worst economic crisis ever and has faced the wrath of most Nigerian and foreign investors for his handling of the forex crisis.

By February, 2017 the exchange rate had hit an all time high of N520 as calls grew for a change of strategy and possibly change of personnel at the top of the apex bank. One month later, the exchange rate will now gain as over 35% closing below N400 for the first time since August 2016.

Nairametrics has provided coverage of the FX rate like no other business news website and we have put together a timeline of events that may have led to the biggest rally the naira has seen at the black market on record.

Read Timeline
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What others say about : Timeline: Forex Decisions Taken By The CBN Since February 2017 (Updated April 10 2017)..


Anodebenze

Sometime .I nearly think it’s there,let wait for the cbn if they will supply more money to the retailer users.e.g the bdc.now why the important question now. is ,why the cbn did not did th supply more money to the bdc before.Prior there was a time the cbn was using travellex to supply forex to the retailer. in Nigeria I was against it,my main reason are WHY NOT THE CBN USES A NIGERIA WHOLLY OWNED COMPANY.IT IS FOR MY COUNTRY,UBA HAVE AN OFFICE IN NEW YORK,THERE ARE VARIOUS NIGERIAN BANKS OPERATING IN LONDON AS THEIR EUROPE BRANCH.(this travellex is a British company founded an indian,who i thought he was born in kenya or Uganda.not sure where he was born,he came to Britain to study,he saw this opportunity in forex and the transferring of forex,and he was very successful,and the man is worth close to I billion dollar today.his rises from rags to riches can be re-created in Nigeria,we have 3000 bdc in Nigeria.IS IT NOT TOO MUCH.I CAN ALSO ASSUME THE CBN TELLS THE BANKS SELLS FOREX AS BDC.WHY WE CANNOT WE HAVE GRADES OF RETAILER OF FOREX,some banks can buy-out those mushroom bdc,and have super bdc, with the help of the cbn,and we will have about 100 to 500 bdc across Nigeria,which will help the cbn be able to carry-out their forex guidelines successful.
We can have middle and lower bdc,they can buys from Nigerians in diaspora,such big bdc,can benefits of reducing their cost

Nevermind

Q: Can the CBN continue to defend the naira?
A: No. Reason could take a whole page. But check out OPEC basket price trend since beginning of March — http://www.opec.org/opec_web/en/data_graphs/40.htm and fall of CBN foreign reserve — https://www.cbn.gov.ng/intops/Reserve.asp since last week to know why.

Q: Will the CBN float or devalue now?
A: No.The EGRP stipulates a full float to happen in 2020. Will the FG be able to hold on till then? Very unlikely.

Q: What is the likely effect of the drop in crude oil prices?
A: Reduce CBN’s ability to sustain the rate and cause marginal fall in parallel market rates within a month’s time.

Q: Are speculators truly obliterated or are they buying back low to sell high?
A: They’re buying back low to sell high. Speculators remain until there is a free float.

Q: Will foreign investors see this as a positive development or would they still hang on till we float?
A: Foreign investors will continue avoiding Nigeria like a plague until a free float happens.

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