CBN’s Fluid Foreign Exchange Rate: Procedure and Likely Consequences

In a recent policy reversal, the Monetary Policy Committee of the Central Bank of Nigeria (CBN) announced that it would be operating a managed float regime from 20th June 2016. This policy shift, will allow Nigerian currency to freely float in foreign exchange markets subjected to limited interventions by the CBN where the fluctuation is deemed undesirable or detrimental to economic growth.