Central Bank of Nigeria (CBN) has finally announced the liberalization of the Foreign Exchange Market (FOREX) under which the value of the Naira will be determined by the market forces.
The Apex Bank Governor, Godwin Emefiele, announced the development which is expected to lead to the devaluation of the Naira, at a news conference in Abuja.
The announcement represents a major concession by President Muhammdu Buhari who had rejected the devaluation of the Naira, on the ground it will impact negatively on the Nigerian economy which largely depends on crude oil export.
Emefiele said there will be one exchange rate in the country’s Foreign Exchange Market, but explained that CBN from time to time will intervene to either buy or sell foreign currencies.
He said CBN would select a group of 10 dealers through which the Naira would be traded.