ForeignExchange: Nigeria Currency Switched To Floating Exchange Rate

The top economic news in Nigeria this week is the CENTRAL BANK OF NIGERIA (CBN) new policy on the exchange rate. For the past few years we have been on a tight fixed rate with the dollar from around 320 to 460 per dollar. And that is the official bank rate here in Nigeria until this week cbn announced that the rate of dollar to NAIRA that is the Nigerian currency can be on a floating state, No more fixed rate.

Though i think is because of the new government every government has their pattern and ways they want to rule the country, hopefully this turn out to favour the citizens as well too.

What could be the effects?

Having a floating rates required the quote or based currency to be on a standard level base on their economic impact, but on the other hand over 10years now we have seen the dollar currency leading the naira. It has been traded mostly average for 100 naira per dollar (N100/$).
Why i feel that the dollar might keep going up is because of Nigeria production sectors will always demand from other countries which will result them to exchange to dollar, almost all gadgets, cars e.t.c are imported from other countries and before these transactions can take place there must be an exchange of currency, most times is Nigerians demanding for dollar.

Scaling up

Is possible to scale up if Nigeria can invest more different sectors of the mineral resources which can attract investors from other countries to invest in them, in that way placing the naira in demand.
Increasing the production sectors where by producing more within the country they by encouraging citizens and foreigners to invest more within the country.
In such way the demand of NAIRA will increase within few years we can be trading N100/$ from where it is now N650/$

My thoughts 💭

i think the best idea as a trader is to bag in more dollars because we might hit N2000/$ Base on technical and fundamental reasons we might see a change though but i Don think it will happen so fast do let's trade for now.😆

DISCLAIMER
THIS IS NOT A FINANCIAL ADVISE ALWAYS MAKE YOUR ANALYSIS BEFORE INVESTING YOUR MONEY.

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