Nigeria is aiming to bring down the dollar rate at the I&E Window to N750 per dollar by December, according to Taiwo Oyedele, Chair of the Presidential Committee on Fiscal Policy and Tax Reforms.
This would involve introducing new foreign exchange rules, including a crackdown on illegal currency trading, to reduce the 45 percent gap between the official and black-market rate.
The government would also clear backlogs of dollar demand estimated at about $6.7 billion, bolster the naira forward market, and set transparent rules for the operations of the official market, he said.
Oyedele said the government aims to expand the official market to include all legitimate transactions, while snuffing out the illicit “black market” for foreign currency.
He believes the naira should find its true value by the end of the year, which he estimates to be between N650 and N750 per dollar.
The current official exchange rate is N462.05 per dollar, while the black market rate is N1,165 per dollar.
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Oyedele’s comments come amid growing concerns about the naira’s depreciation. The currency has lost more than 20% of its value against the dollar this year, due to a combination of factors including falling oil prices, a slowdown in economic growth, and investor concerns about the country’s political stability.
The government’s plan to bring down the dollar rate is seen as a positive step, but it remains to be seen whether it will be successful. The government has a history of making ambitious promises about the economy, but it has often been unable to deliver on them.
Only time will tell whether Oyedele’s prediction of a N750 per dollar naira by December will come true.
Source: Daily Trust Newspaper