THE NATION
With over $2.5 billion foreign exchange demand backlog yet to be cleared at the official window and $4 billon at the parallel market, dollar scarcity has entered a disturbing phase in Nigeria’s exchange rate management system. The naira, which exchanges at N440/$1 and N758/$1 in the official and parallel markets, respectively, is decimated by diverse factors and policies. From forex restrictions, multiple exchange rates, stoppage of dollar sales to bureaux de change to difficulty in repatriating investors’ funds, forces against the naira have continued to wax stronger. But the Central Bank of Nigeria (CBN’s) fight bank options like Race-To-$200 billion (RT200) policy targeting $2 billion to $5 billion non-oil export earnings in three to five years, Naira-4-Dollar scheme which supports diaspora remittances inflows and domiciliary account restriction policies promise to reverse the trend and restore naira dignity. Assistant Business Editor COLLINS NWEZE examines the future of the naira in the face of perennial dollar scarcity and moves to return the local currency to its glorious days.
