Following the problem between the naira and dollar which has lasted over some time after various methods by the government to cushion the effect.
The Central Bank of Nigeria (CBN) has finally let go of pegs on the naira, allowing the market forces to determine the true value of the local currency against other currencies across the world.
According to the governor of the Central bank, Mr. Godwin Emefiele who spoke at a press conference in Abuja on Wednesday said the financial institution will operate a single trading window which will commence on June 20,2016. And the bank will not interrupt the process but will only step in from time to time.
In order to carryout the new process effectively, the Central bank will appoint less than a dozen primary dealers who would now be in charge of foreign exchange trading, driving flexibility in the system.
He furthered that nothing can be done about the already banned articles and cannot access forex from new window.
It would be recalled that the CBN had initially applied a peg on the naira keeping it at 197 to the greenback on the parallel market, while the parallel market rate spiraled gradually away from the official price to trade at 368 to the greenback on Tuesday.
The Cental bank promised to release the full guidelines soon.
