Abuja, Nigeria – (African Boulevard News) – The Central Bank of Nigeria (CBN) made an announcement on Wednesday, letting the market dictate the exchange rate of the country’s currency to stabilize the economy and woo investors. This move ends the fixed exchange rate Nigeria had been operating for years.
This announcement led to a record fall in the value of Nigeria’s currency, the naira, which fell to 755 per U.S. dollar. However, the currency has since recovered some of its value, as investors have shown confidence in the Nigerian economy’s future prospects.
According to industry experts, this move is expected to encourage foreign investors to return to Nigeria, as the country’s currency will now better reflect the true value of its economy. This announcement is seen as a significant step towards promoting transparency and accountability in the Nigerian economy.
“The move is long overdue, and it signals a willingness by the government to take bold steps to revive the economy. The market-determined exchange rate will create more room for foreign direct investments, as well as promoting a more vibrant export sector,” said Aisha Ahmad, Deputy Governor of the Central Bank of Nigeria.
The CBN will continue to intervene in the foreign exchange market to manage excessive volatilities, while the market’s forces will determine the exchange rate. The central bank’s reserves of over $30 billion will also serve as a cushion against any significant shocks in the foreign exchange market.
The CBN decision is part of a broader plan to reform Nigeria’s economy and further diversify it away from oil. It comes as the country is still grappling with the effects of the COVID-19 pandemic, which adversely affected the economy.
This bold move by the CBN has been welcomed by both local and foreign investors. It is expected to create more room for foreign direct investments, as well as promoting a more vibrant export sector.
“The move is a game-changer for Nigeria, and it shows that the government is ready to take the necessary steps to stabilize the economy. I believe that this would lead to a more prosperous Nigeria, and it would attract more investors to the country,” said John Smith, a foreign investor.
In conclusion, the CBN’s decision is a bold move towards promoting a more transparent and accountable economy in Nigeria. It is expected to attract foreign investors back to the country as the exchange rate better reflects the true value of the economy. The move is part of a broader plan to diversify the economy and promote economic growth.
