Business Hilights
Tracking Nigeria's Headline Business News Online

Why CBN should be tired of pursuing single exchange rate regime

The failure of the Central Bank of Nigeria (CBN) to effectively achieve single foreign exchange regime in the number of months it had been pumping forex to the market is a pointer that the feat which it claimed was  getting close few months ago has become impossible.

Experts say the more the gap between both rates looks as if it is closing up, the wider it becomes.

Analysts say in so far the Bureau D’ Change (BDC) operators still have access to the market and remain alive, single rate regime remains a white goose chase.

However, the last straw which experts say may have pulled down and broken the Carmel’s back is the proposal by the federal government to peg rate at N305 to US$.

Otherwise, chances of full unification of the nation’s current multiple exchange rates regime, going by the decision to peg the naira/dollar exchange rate at the official Central Bank of Nigeria rate of N305 to the US$ in the proposed 2018 budget have been dashed and foreclosed between now and end of 2018 budget regime.

Business Hilights recalls that the apex bank had been working towards a rate unification in last couple of months, but may have been pulled aback with the position of the presidency as contained in the 2018 budget proposal.