As flexible exchange rate regime kicks off on Monday, June 20, with $1 at around N260 and N270, simple arithmetic suggests that the pump price of petrol, now at N145 , will fall nearer N100. Some observers calculated that the new template used to arrive at N145, from N86.50 per litre, adopted around N285 to a dollar. And since the flexible rate will first rise and later settle at around N250 to a dollar or less, according to analysts, prices of commodities denominated in dollars, especially those using the secondary or black market, will plummet.
But many Nigerians are worried about the possibility of prices of any item falling. That from experience, anything that goes up here never comes down.
What’s more, many believe that the new flexible exchange rate will be sabotaged by speculators, money launderers and greedy bankers. And the Naira will rise far above N300 to a dollar, frustrating more of the efforts of Buhari’s government at arresting the collapsing economy.
Officially, the dollar exchanges for about N197. In the black market, it settled at N365 yesterday ( Wednesday, June 15).