The Nigerian naira has been officially floated and commercial banks are selling to willing buyers at a rate of 750 – 755 Naira to 1 Dollar. This transition marks a departure from the previous policy of maintaining a fixed exchange rate, which had deterred investors due to concerns over the sustainability, and limited access to foreign currency.
Moving forward, the argument is that the priority should be placed on ensuring a steady supply of dollars to support the newly floated naira. Adequate foreign currency reserves will be crucial in maintaining a stable exchange rate and meeting the demands of both domestic and international requests.
According to Business Day, the price could soar as high as 800 – 1000 Naira by the end of the day. The decision to float the naira aligns with broader efforts by the Nigerian government to implement structural reforms and attract foreign direct investment.