Hoarders and speculators of major international currencies are in panic mode as exchange rates cascade in torrents southward. From dollars, euros to pounds, all are taking a beating as the Central Bank of Nigeria began implementing the new policy expanding access to forex for travellers, students in universities abroad and those seeking medicare at around N375/ $1.
And from Monday (February 20, 2017), the Naira started recording remarkable gains to the bewilderment of those who keep and speculate. From N525/ $1, the rate plummeted to N440/$1 in the afternoon of Friday, February 24.
Analysts predict that by the end of this week, we may be looking at less than N400/ $1.
On Friday, February 24, in Ikeja area of Lagos, dollar exchanged for N450, £1/N520 and €1/480. People were ready to just sell what they had as the future of international currencies falling is almost certain.
The move by the Central Bank of Nigeria attracted muted jubilation as Nigerians look forward to a crash in prices of products which escalated and brought inflation rate to 18.75% in January. Even prices of products with no forex imput skyrocketed.
If the inflow of forex to end users is sustained, the economy will record impressive improvement as recession pains wane. And productive economic engagements will multiply.