CBN’s exchange rate unification delay affecting investors’ confidence- analyst

The Central Bank of Nigeria’s (CBN) delay in harmonizing foreign exchange rates is impacting investors’ confidence negatively, Moses Ojo, Head, Research and Business Development, PanAfrican Capitals, has said.

He argued that the Central Bank’s foot-dragging on the planned unification of the multiple exchange rates in the country is making investors lose faith in the country’s market. He said this is not good for Nigeria’s investment drive at a time it is need of foreign investments.

Although the CBN has devalued the Naira twice in the official forex window in the last two months, Nigeria still has more than three exchange rates across different markets, which analysts believe is giving room for arbitrage.

While Dollar was sold for N381 at the official forex window on Friday, it exchanged N386/$ at the Investors’ and Exporters’ segment of the market. At the bureau de change section of the market, a Dollar was sold for N473, while it traded N475 at the parallel forex market.

“The timeframe and the modality for the unification of the exchange rate is supposed to have been released by the CBN. It is not something that should take time. For me, it just shows a lack of sincerity on the part of our policy-makers in that regard,” Mr. Ojo stated.

He added that the convergence of the exchange rate with a single band would bring about transparency in the Nigerian foreign exchange market.