Sam Ikeotuonye 29 June 2016, Sweetcrude, Lagos – The Central Bank of Nigeria, CBN, has been commended for allowing the Naira to be driven by market forces.
Making the commendation in Lagos, Wumi Iledare, Director, Emerald Energy Institute, also praised the CBN for not placing a price ceiling or floor as was the case with the petroleum market.
Iledare also called for transparency on the part of the CBN in the implementation of the new policy, emphasising that with transparency, the oil and gas sector would thrive under the regime.
According to him, so long as there is transparency in the system, the indigenous oil exploration and producing companies will survive.
Iledare also stated: “Regulatory capture must be avoided. What that means is that CBN officials must be on top of the issues and commit adequate resources to manage the volatility the market systems bring to forex pricing”.
The CBN floated the Naira about two weeks ago, saying it will allow naira exchange rate to be market-driven,
There will only be one exchange rate and the bank will intervene in the market to buy or sell foreign exchange “as the need arises,” CBN governor Godwin Emefiele said while announcing the introduction of the new policy. “We’re talking about an open, transparent two-way system,” he said.