Abuja, Nigeria – (African Boulevard News) – The recent move by Nigeria’s central bank to end its distorted foreign exchange rate and allow the market to set the currency exchange rate has caused a stir among Nigerians. This decision was made by the new government in Africa’s biggest economy with the aim of wooing investors and stabilizing the local currency.
The move by the central bank is a departure from the past, where currency exchange rates were fixed by the bank, leading to distortions in the economy. Nigerians have reacted differently to this decision, with some expressing optimism about the move, while others are skeptical.
In an interview, an economist, Dr. Tunde Adeoye, said, “This is a positive move by the central bank. The market will now determine the price of the naira, which will lead to a more stable exchange rate. This will attract investors to Nigeria, as they will have a clearer picture of the exchange rate.”
However, some Nigerians are worried that the move will lead to an increase in the price of goods and services, as the exchange rate will fluctuate based on market forces. They fear this will have an adverse effect on the economy, especially on the poor.
In response to these concerns, the Minister of Finance, Zainab Ahmed, assured Nigerians that the government would closely monitor the situation to ensure that the move does not lead to an increase in the price of goods and services. She also added that the government would continue to provide support to vulnerable Nigerians through social welfare programs.
The decision by the central bank has also been welcomed by international financial institutions, such as the International Monetary Fund (IMF), who have long called for the government to allow the market to set the exchange rate. The IMF believes that this move will lead to a more efficient allocation of resources and attract more foreign investment to Nigeria.
In conclusion, the decision by Nigeria’s central bank to end its distorted foreign exchange rate and allow the market to set the currency exchange rate has elicited mixed reactions from Nigerians. While some are optimistic about the move, others are worried about its impact on the economy. Nonetheless, the government has assured Nigerians that it will closely monitor the situation to ensure that the move does not lead to an increase in the price of goods and services.
