It is no longer news that the federal government has put an end to all speculation by unveiling a flexible foreign exchange policy. The new flexible forex policy will likely kick off on Monday 20th of June 2016.
However, before the devaluation takes it full effect, we have outlined some forecast as to how things will change positively in the economy.
Here are our positive predictions of the devalued naira
Dollar Scarcity Will Reduced
Nigerians vibrantly trade with the US dollar on daily bases which is why the recent scarcity of the greenback caused a major chaos in every sector of the economy. The new flexible forex policy will make room for more Bureau De Change operators to source for dollar through other means, a move which will in turn boost the supply of Dollar.
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Restriction on Naira Card will be Lifted
Late last year President Muhammadu Buhari stated that the forex reserve could no longer provide forex for students and Nigerians abroad, this in turn led to the Federal Government placing a ban on the use of Naira cards abroad.
However, the recent devaluation will see this ban lifted as inflow of forex will no longer be narrowly done.
Petrol Pump Price May reduce
This has already started in some fuel station around the country, especially in Lagos. Availability of dollar coupled with the deregulation of the downstream oil sector is a major boost for oil marketers as they can now import oil products without any form of inconvenience. This will in turn attract more investors in to the oil sector. And more investors will bring in a healthy competition that will result in reduction of the official pump price of petrol (N145).
Written By Enisan Daniel