The Central Bank of Nigeria, CBN, has expressed optimistic that the naira would settle at around N250 to the U.S. dollar after an initial period of weakness following a flotation on Monday,June 13.
The apex bank’s governor, Godwin Emefiele made this known in a letter written to President Muhammadu Buhari, according to Reuters.
CBN had on Wednesday, said it would begin market-driven foreign currency trading next week, abandoning the peg of N197 naira per dollar that it has supported for 16 months after collapsing the exchange window into one.
The naira is expected to fall sharply when interbank trading begins on Monday, but the central bank said it did not have a target for the currency and the price would be purely market-driven.
Giving the first indication of a target, the CBN governor, in a June 3 letter to the President, Buhari, seen by Reuters, said that the central bank hopes the naira will eventually trade at around N250 per dollar.
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