TheEagleOnline - The Central of Nigeria has been directed by its Monetary Policy Committee to adopt a flexible exchange rate policy.
The directive was handed down to the management of the apex bank by the MPC during its meeting in Abuja at the CBN headquarters.
The meeting was held from Monday till Tuesday.
Briefing newsmen after the meeting, the Governor of CBN, Godwin Emefiele, confirmed the development.
Emefiele said on Tuesday that with the directive, the CBN would in the next few days release a new guideline on the management of foreign exchange in the country.
He said following the recent depreciation in the country’s foreign exchange, time has now come for the bank to introduce greater flexibility in the management of foreign exchange.
He said while the country awaits the new policy to be unveiled soon, the bank would only fund critical transactions such as importation of vital machinery for production as well as essential basic raw materials that are critical for manufacturing, which by their nature cannot be sourced locally.
As earlier reported on Tuesday by The Eagle Online, the new development will see the CBN selling the Dollar to Naira at about N250 to $1.
At present, the official exchange rate is N197 to $1.
The flexible exchange rate system is a monetary system that allows the exchange rate to be determined by supply and demand.