BEVERLY HILLS, June 14, (THEWILL) – The Central Bank of Nigeria (CBN) has confirmed the exclusive story published by THEWILL reporting that the apex bank would unveil details of new flexible foreign exchange policy on Wednesday, June 15, 2016.
The report was confirmed on the official Twitter channel of the Central Bank of Nigeria, @cenbank.
“#CBN set to release new Guidelines on flexibility in the Foreign Exchange Market structure on Wednesday, June 15, 2016,” it tweeted.
THEWILL had gathered from authoritative sources at the reserve bank that an announcement by Governor Godwin Emefiele will be made on Wednesday in Abuja having concluded consultations with various stakeholders on the policy.
“The naira will be officially devalued tomorrow and going forward the exchange rate will be market-driven as done anywhere else in the world,” our source with knowledge of the policy said asking to remain anonymous.
Another source at the apex bank told THEWILL that Emefiele may announce a single tier forex market instead of two tier system as previously hinted by the Governor few weeks back. “There may be no ‘critical window’ for the industrial segment as being suggested,” the source said.
The CBN had set the official rate at between N197-N199 but the scarcity of foreign exchange due to the crash in the global price of crude oil, which accounts for the bulk of the nation’s foreign exchange inflow has forced the naira down at the parallel market (black market) to between N365-N370, mostly due to speculative trading in anticipation of the implementation of the new policy.
Analysts are positive that the new policy would stabilize the forex market, calm nervous foreign investors and ease the flow of foreign exchange in and out of the country.
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Story by David Oputah
