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The naira yesterday continued its free fall against the dollar, as uncertainty grips the foreign exchange market over the delay by the Central Bank of Nigeria (CBN) in coming up with clear framework on how the new flexible FX policy would be implemented.
The naira depreciated further to N361 to a dollar on the parallel market yesterday, as against the N357 to a dollar it closed on Monday.
Dealers attributed this to the uncertainty over the flexible exchange rate as there have been speculations that the policy might be announced this week. As a result of this, currency traders have been hoarding the dollars in anticipation that its value against the naira would strengthen once the policy is announced.
CBN Governor, Godwin Emefiele during the last monetary policy committee, said the central bank resolved to introduce greater flexibility in the foreign exchange market structure and to retain a small window for critical transactions for prospective investors.
“With the foreign exchange market framework now ready, the MPC voted unanimously to adopt greater flexibility in the exchange rate policy to restore the automatic adjustment properties of the exchange rate,” he added.
The naira depreciated further to N361 to a dollar on the parallel market yesterday, as against the N357 to a dollar it closed on Monday.
Dealers attributed this to the uncertainty over the flexible exchange rate as there have been speculations that the policy might be announced this week. As a result of this, currency traders have been hoarding the dollars in anticipation that its value against the naira would strengthen once the policy is announced.
CBN Governor, Godwin Emefiele during the last monetary policy committee, said the central bank resolved to introduce greater flexibility in the foreign exchange market structure and to retain a small window for critical transactions for prospective investors.
“With the foreign exchange market framework now ready, the MPC voted unanimously to adopt greater flexibility in the exchange rate policy to restore the automatic adjustment properties of the exchange rate,” he added.