The Central Bank of Nigeria, CBN, on Wednesday released modalities for the country's new flexible foreign exchange regime.

Here are things that are expected to happen in the next 10 days as a result:

1. Naira will get a new official price against the dollar when the market opens on Monday

2. The naira will appreciate against the dollar immensely at the black market

3. Scarcity will be reduced as dollar will be more available to buy

4. The gap between the official market and the parallel market will shrink

5. Round-tripping by dollar dealers (individuals and companies) will be massively reduced

6. The restrictions on naira cards abroad will be removed

7. The pump price of petrol may reduce

8. Inflation rate will reduce

kaeforum:
This is a theoretical analysis, we shall see if you re right in 10 days:

But I strongly disagree with you on the following points:

1. The Nations oil output has drastically reduced due to vandals from militants and refusal of foreign buyers to patronize us.

2. The country produces little except oil, it imports more than 85 percent of its products for manufacturing, this will cause deficit in balance of payments with other countries.

3. Dollar will continue to appreciate against the naira as firms and companies prefer to hold dollar currency than naira.

4. Current govt is low on funds, already having challenges implementing budget.

5. Scarcity will return as Importers dont have dollars to import fuel at changing exchange rate.

Keneking:
Amazing but where is lalasticlala sef

RevDesm0ndJuju:
Arrant nonsense from the OP.

The CBN policy is to effectively bring about a duo parallel rate at the official market.

This will lead to officially devaluing the naira and thus see a fall in the naira.

There will also be diversions of forex by those approved to source at the subsidised rate of 199 since why should I bother importing raw materials when I can simply sell the forex I get from the CBN at a subsidised rate at the black market?

This is just another foolish policy that will create avenue for quick money for those allowed to access forex.

The only solution is to float the damn naira already in an open bidding auction.

FriendChoice:



The Central Bank of Nigeria, CBN, on Wednesday released modalities for the country's new flexible foreign exchange regime.

Here are things that are expected to happen in the next 10 days as a result:

1. Naira will get a new official price against the dollar when the market opens on Monday

2. The naira will appreciate against the dollar immensely at the black market

3. Scarcity will be reduced as dollar will be more available to buy

4. The gap between the official market and the parallel market will shrink

5. Round-tripping by dollar dealers (individuals and companies) will be massively reduced

6. The restrictions on naira cards abroad will be removed

7. The pump price of petrol MAY reduce

8. Inflation rate will reduce