With less than $600m supply into the spot market, the naira has gained 13% of its value to N460/$. Can you imagine what would have happened if the spot market was adequately funded in a transparent manner 9 months ago, rather than the opaque forward transactions.
Maybe we could have had a soft landing rather than a race to the bottom. This move by the CBN is a good one in the right direction provided the dollar supply is sustained.
We expect the CBN to commit itself to a regular and predictable supply of dollars to the forex spot market in March. There will be a rapid convergence of rates and a gradual end to multiple exchange rates (MER) and forex abuse.
Please find attached the presentation shared on Channels TV network news on February 20th by Mr. Bismarck Rewane.