The Nigerian naira at interbank market has crashed to N285 to the dollar ahead of the release of modalities for the implementation of the adopted flexible exchange rate policy as announced by the Central Bank of Nigeria (CBN).
This was sequel to increased perception that CBN has withdrawn from the weekly foreign exchange (forex) intervention, which forms part of the newly adopted policy, paving the way for banks and Bureau De Change (BDC) operators 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 pronouncements on the new foreign exchange measure.
The new rate represents about 43.2 per cent increase from N199 to the dollar it previously traded, which according to analysts suggests that the market is gradually adjusting itself to the new direction, although the details are yet to be unfolded.
The CBN Governor, Godwin Emefiele, had last week after the Monetary Policy Committee meeting said that while adopting the new policy, the apex bank would only open a small window for critical transactions, which relate to the import of plants and equipment to produce goods for which their raw materials are almost 100 per cent available locally.