CBN move to allow naira trade more freely against di dollar - Wetin e mean?

Nigerian Central Bank, CBN don decide to allow the local currency Naira to trade more freely against the United States Dollar.

Di decision dey come afta President Bola Tinubu commit to putting in one place Nigeria multiple exchange rates during im inauguration last month.

Before Wednesday announcement, di naira bin dey go for 460 to $1 dollar at di official rate but dey go as high as 750 naira for di parallel market - Bureau De Change and black market.

Inside statement wey dem title "Operational changes to the Foreign Exchange Market," Di apex bank say all segments don dey collapsed into investors and exporters, I&E window and application for medicals, school fees, BTA/TPA and SMEs go continue to dey process through di deposit banks."

Di statement also add say "Di operational rate for all government related transactions go be di weighted average rate of di previous day executed for di I&E window, wey go dey calculated to two decimal places."

Experts say di latest announcement by di CBN go allow di naira to find im market level against di dollar base on di forces of demand and supply wey go also empower banks to sell forex di way market factors allow am.

Government dey hope say dis new pricing way of di Naira go see more efficient foreign exchange regime and also comot di roadblock pipo dey get wen dem wan access foreign currency.

For di last six years, Nigerians dey suffer to get foreign currency for trade, tourism and school fees among oda needs,

And na dat one increase demand and make di exchange rates go up for di black market.

How market react to di news

As at di time wey we publish dis tori on Thursday morning, di dollar to naira rates don already dey adjusted for banks.

Staff of one of di major banks for Nigeria, Zenith bank wey dia rate dey read N654 to a dollar tell BBC Pidgin say na di way dem begin trade di currencies be dat dat morning, noting say tins fit likely change before di close of work.

“As at dis morning, dollar dey go N654 compared to Nigerian naira but as you know di market fit change later on.”

Na same tori for Jaiz bank as one staff tell us say di rate na N654 to one dollar for dia side as at Thursday morning.

Meanwhile, Alhaji Nabahani Usman wey be bureau de change operator for Kano state northern Nigeria and say as at Thursday morning, each dollar dey go for N758.

But e also add say di price fit change during di course of di day depending on di demand for di US Currency.

“If di demand go up before di end of di day di price go change from di N758 dis morning to a different one, so we dey wait to see.”

Wetin sabi pipo tink about CBN move?

Oga Muda Yusuf wey dey work with di Centre for the Promotion of Private Enterprise tell BBC say wetin CBN do go unlock investment and create jobs for Nigeria.

Mr Yusuf also add say di move go give investors beta confidence about Nigeria wey go make dem invest dia money for di kontri.

“Wetin goment do allow go allow correct investment to enta and jobs too and e go also give massive confidence to investors.” Yusuf tok.

While Victor Aluyi wey be Senior Vice President for Sankore investment tell BBC Pidgin say dis move by di Nigerian goment dey ‘long overdue’.

According to Mr Aluyi, di move go make dollar more accessible to pipo and go also lead to medium and long term investment for di kontri.

“Dis na bold move from dis goment and I commend dem for dis because now, restrictions no dey again and investors go surely like am.”

“Not immediately but for medium and long term, dis move get ogbonge benefits for di kontri in terms of investment.”

Oda financial experts wey BBC Pidgin tok to on di mata also agree with Mr Aluyi saying Nigeria stand to benefit from wetin CBN announce.

Femi Oladehin wey be partner for Argentil Capital tok say though Nigerians go endure hardship in di short term before tins go balance out.

“So di biggest benefit of all dis be say our production lines go come front and dis don address di imbalance we see in di last eight years.”

“Though Nigerians go need endure in di short term before tins go come beta." E tok.