All other things being equal, the Central Bank of Nigeria (CBN) will further weaken the naira within this week, Bloomberg is reporting.
The report further said the CBN will introduce a dual exchange-rate system as it unveils a new policy to the effect in few days from now.
Bloomberg quoted an unnamed source who attended a meeting between Godwin Emefiele, the CBN governor, and bankers on June 9 where the issue was discussed.
The source said the meeting held in Abuja and that the announcement would be made in a circular to banks later this week.
Analysts including those at Renaissance Capital Ltd have said they expect the central bank to allow the naira to weaken around a trading band in the interbank market, while allocating dollars at a fixed rate to industries the government deems strategic.
The announcement is yet to be made because the apex bank is believed to be putting finishing touches to the policy which may also reinstate a minimum holding period for foreign investors buying naira bonds, the report said.
President Muhammadu Buhari, for many months, refused to devalue the currency arguing that this would cause inflation.
But with inflation for May announced to be at N15.6, the prices of commodities are already high thus betraying the argument.
The report however quoted Aminu Gwadabe, president of the Bureau de Change Operators of Nigeria as saying that the black market rate may strengthen if the official exchange rate is weakened while inflows from investors would pick up.
Speaking from Lagos, he said: “The naira might trade around 300 to a dollar on the black market after the announcement, because we expect supply to improve.”
A report by The Will mid-May had said President Muhammadu Buhari has given his nod for the further devaluation of the naira.
