Abuja, Nigeria – (African Boulevard News) – Nigerians have expressed mixed reactions following the Central Bank of Nigeria’s decision to let market forces dictate the exchange rate for the Naira. The decision, which came after years of rigid controls, has been met with cautious optimism by some and skepticism by others.
The move was aimed at attracting foreign investment and stabilizing the local currency after years of depreciation. In a statement, the central bank said it would be “introducing a flexible exchange rate regime” that would “improve the efficiency of the foreign exchange market”.
For years, the central bank has maintained a fixed exchange rate that many economists and investors said was unsustainable. The black market exchange rate has often been far weaker than the official rate, leading to a thriving parallel market.
According to some industry experts, the decision could lead to a further depreciation of the Naira. “This is a welcome development, but the Naira is likely to depreciate further in the short term before the market stabilizes,” said Bismarck Rewane, CEO of Financial Derivatives Company.
Despite the potential risks, some Nigerians are optimistic about the move. “It’s about time the government stopped pretending it could dictate the exchange rate,” said Emma Akpan, a Lagos-based businessman. “This is a step in the right direction for the economy.”
Others, however, are skeptical of the government’s motives. “The government has been in power for six years and has only now decided to let the market dictate the exchange rate,” said John Ameh, an Abuja-based civil servant. “We need to see more concrete steps to boost the economy, not just rhetoric.”
Similarly, the Nigeria Labour Congress (NLC) said it was concerned about the potential negative impact on the country’s working class, urging the government to implement measures to cushion the effects of the new policy.
In conclusion, the decision by Nigeria’s central bank to let market forces dictate the exchange rate for the Naira has been met with mixed reactions. While some Nigerians see it as a step in the right direction for the economy, others remain skeptical about the government’s true intentions. With potential risks and benefits, only time will tell if this move will truly stabilize the local currency and attract foreign investment.
