The Central Bank of Nigeria (CBN) under the governance of Mr. Godwin Emefiele has announced ANOTHER FOREIGN EXCHANGE “window”.
The market reaction has now settled and we can see the long term impact.
This particular window is said to be for bond and stock investors as well as exporters.
The novelty with this window is that it will supposedly float with market demand for the controlled supply.
Is this little a more than a throwing a bone to those who demand a floating naira?
Could this also further an opportunity for CBN officials to trouser profits from controlling another market and being able to arbitrage rate differences?
The picture is always so confusing. Perhaps deliberately.
We can now see what impact this announcement and related sale of future contracts has had.
The answer is precisely nothing. Nada.
The rates have not moved. Why?
Perhaps there are more fundamental problems for investors and exporters than a small amount of dollars being made available if they can even navigate the corruption to get their hands on it.
The fundamentals for Nigeria are poor.
Perhaps dollar scarcity has been a symptom and not a cause of the malaise.
Now that is cause for concern. Is this a sign that receiving scarcity will not impact rates as there is now no wish to trade?
It remains to be seen – but this is, perhaps, a sign.