President Muhammadu Buhari, through the Central Bank of Nigeria, CBN, has concluded plans to meet with the Bureau De Change, BDC, operators, in a bid to correct the Naira’s sharp depreciation against the dollar.
According to news reports, the CBN, will also fashion out modalities on how to align the nation’s conflicting exchange rates, across the country.
Confirming the proposed meeting, the President, Association of Bureau De Change Association, ABCON, said the body would meet with the Central Bank officials, on Tuesday, January 10.
He said, “We would like to find ways to resolve the issue of multiplicity of exchange rates, and ensure stability in the market,” adding that, the aim was to boost liquidity, and attract foreign investors.
Recall, that the naira significantly lost one third of its official value, against the dollar, in 2016, when the apex bank decided to abandon its former rate, by adopting a fixed exchange rate regime.
President Buhari, Vice President, Yemi Osinbajo, and the Minister of Finance, Kemi Adeosun, had hinted that the country would get more flexible with its exchange rate system, narrowing the conflicting gap between the parallel and official market, but all to no avail, as it has further widened the gap.
The General Overseer, Latter Rain Assembly, Tunde Bakare, had on Sunday, January 8, called on President Buhari, and the CBN, to dump their “confusing” exchange rate regime.
As at Monday, January 9, the naira traded for N490 to the dollar at the parallel market, while the official rate exchanged at N305, to the same dollar.
Although, the naira recorded some gains, as it exchanged at N490, from N493 posted last Friday, the pound sterling and the euro traded at N600 and N506, respectively.
However, with renewed calls for further devaluation of the naira, in a bid to attract more investors, Financial Analysts, have predicted that the naira might hit an all time low, exchanging at N1,000 to a dollar, before the year ends.