Reports indicate that the Central Bank of Nigeria will announce its new policy direction on foreign exchange on Wednesday.
Despite promises of stabilizing the Naira during election campaigns, the Buhari led administration has appeared clueless as its series of disastrous policy decisions have significantly weakened the Naira. Despite several calls for a devaluation owing to the vast difference between the official rate and the parallel market, the CBN held its ground and adhered to its valuation of $1 to N199.
Attempts at abolishing the parallel market and stringent control of foreign exchange has created a situation almost similar to Venezuela. Sources indicate that the CBN has reconsidered its position on foreign exchange restrictions and will announce yet another attempt to shore up the Naira.
CBN Governor Godwin Emefiele has been blamed for the frequent policy somersaults which many have claimed are ‘trial and error’ policies.
