By Arabinrin Aderonke Ogunleye-Bello
In a significant move aligning with President Bola Tinubu’s pledge to unify multiple exchange rates, the Central Bank of Nigeria (CBN) has granted commercial banks and forex market dealers the authority to sell forex at market determined rates, this development indicates that Nigeria is now operating freely floating exchange rate system.
While an official confirmation is pending until data from Financial Markets Dealers Quotations (FMDQ) becomes available, President Tinubu has underscored the crucial nature of a unified exchange rate, he emphasized the necessity to redirect funds from arbitrage into meaningful investments, along with the reduction in rates that are currently burdening both people and businesses in Nigeria.
These policy announcements are signals to a fresh approach to economic governance in Nigeria, the President advocated for a thorough cleansing of monetary policy, implying a direct assessment of the current central bank and its policies aimed at curbing inflation and maintaining exchange rate stability.
The unification of the exchange rate under president Tinubu administration brings numerous benefits, it will enhance market transparency, foster investor’s confidence, and promote a favorable business environment.
By redirecting funds towards productive investments Nigeria can expect faster growth and more job opportunities.
President Tinubu’s consistent commitment to his promises and his vision for a prosperous Nigeria solidifies his reputation as a trustworthy leader.
_Arabinrin Aderonke is an Award-Winning Investigative Journalist, Good Governance, Gender Rights and Peace Advocate. She writes from Abuja_
