Naira crashes to N285/$1 at interbank market

By Odunewu Segun

While still waiting for the details of the flexible exchange rate policy announced by the Central bank of Nigeria at its last Monetary Policy Committee meeting last week, the naira has crashed to N285 to a dollar at the interbank market.

According to the CBN, exchange rate of the naira would be determined by the forces of supply and demand. It intends to throw the naira into the open market, paving way for one to walk into the bank and ask to buy forex at the market rate, hence, putting pressure on black market and Bureau de Change operators.

ALSO SEE: Buhari gives CBN go-ahead on flexible naira

The new policy also means that banks and BDC operators will have to source forex autonomously and sell according to market dynamics. The interbank rate had run nearly at par with the official at N199 per dollar and N197 per dollar respectively before the CBN made the roundabout turn last week, announcing a new exchange measures.

The new rate represents about 43.2% increase from N199 to the dollar it previously trade, which according to analysts suggest that the market is gradually adjusting itself to the new direction.

Meanwhile, the senior special assistant to President Muhammadu Buhari speaking in interview recently said President Buahri is opposed to devaluing the naira but has given his assent to the decision of the CBN to introduce flexible exchange rate in managing the country’s currency problems.