Reports making the rounds suggest that the Central Bank of Nigeria could be making its guidelines for the new flexible foreign exchange regimes this week. There is a general expectation that this will be done on Friday.
The adoption of a flexible FOREX regime by the country’s apex bank followed increasing difficulties encountered by businesses as a result of the scarcity of foreign currency needed for transactions. Losses incurred by companies owing to the FOREX crisis run into billions of naira. Changes made to the CBN’s policy on FOREX has been widely anticipated, and its introduction was greeted with cautious optimism by the business community.
Following the unveiling of the flexible FOREX regime, the CBN has been consulting with major stakeholders in order to fashion out a policy aimed at restoring relative stability to the naira. Revealing the modalities for the operation of the adjusted FOREX regime should help clarify the Central Bank’s new policy stance.