The Governor of the Central Bank of Nigeria Godwin Emefiele has written a letter to President Muhammadu Buhari explaining the foreign exchange plan announced on June 15.
In the letter, the CBN governor said that the bank hopes the local currency will finally trade at around 250 per dollar, a level the president has approved.
“I must assure Your Excellency that we are indeed reasonably optimistic that at some point the rate will settle around 250 naira,” he says in the letter.
He said it could take three to four weeks to clear a $4 billion backlog of foreign exchange demand
The CBN on June 15 said it would begin market-driven foreign currency trading on Monday, leaving the peg of 197 naira per dollar that it has been supported for 16 months.
The president has months insisted that he does not want the devaluation of naira, but supported a more flexible exchange rate policy when the central bank outlined its plans in May, without explaining.
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