With the flexible foreign exchange policy driven by the Central Bank of Nigeria (CBN) opening today, analysts have predicted a volatile and interesting trading for the day.
According to Our Official Currency Converter, the interbank market, which opened by 9.00am and closed at 2.00pm, will see the naira-dollar exchange rate in a volatile state. The local currency is likely to exchange around between 250 and 280 against the greenback.
The CBN, three weeks after the Monetary Policy Committee’s (MPC) consensus decision to adopt a flexible exchange rate system, announced the re-introduction of a market-driven two-way quote single Interbank Foreign Exchange (FX) Market last Wednesday. The policy shift is against the CBN’s long-held stance of maintaining naira-dollar peg at N197/$1.
The fifteen banks accredited by the CBN for the new FX window had sent in requests totalling about $4.5 billion, a development which the apex bank said it would meet.
Head of treasury at one of the deposit money banks told newsmen on Monday that, the development has already geared activities at both the capital and money markets.
