The Central Bank of Nigeria, CBN, is planning to introduce a dual exchange rate system and weaken the naira when it releases modalities for a flexible exchange rate.
The apex bank will probably make an announcement in a circular to banks, someone who was at a private talk between Godwin Emefiele and bank CEOs on June 9 in Abuja, said.
The black market rate may strengthen if the official one is weakened and inflows from investors pick up, Aminu Gwadabe, president of the Bureau de Change Operators of Nigeria, said.
“The naira might trade around 300 to a dollar on the black market after the announcement, because we expect supply to improve,” he said. “In the past weeks, the central bank created doubt in the market, which triggered another round of speculation.”