I no know if I go say this our government them just the do economic experiments them with our country currency the naira.
Same government wey ban the operation of Bureau De Change (BDC) don come back now com unveil another operational policies for BDC. According to them oh, say the move go bring ogbonge stability and transparency to the exchange rate fluctuations wey go benefit both BDC people and the general public.
Make I just list one or two of these policies wey dem bring in:
1. Them say BDC people go the make sure say them summit periodic financial reports wey include daily, weekly and monthly report to the government (CBN).
2. Say even wen no transaction take place by this BDS people within the day, week or month make dem still summit report, etc.
Make I drop source link for more complete info
https://nairametrics.com/2023/08/18/cbn-brings-back-bdc/So as it stand like dis now BDC don enter back inside the country foreign exchange market wey mean say all other policies wey the former CBN governor been put don dey invalid right now.
So my people, abeg how una see this new development from we government, you tink say this policies fit bring or make any positive impact on the naira? Or nah just like another past policies wey nothing come out or abi na ey service this government just wan do?
Abeg Chuk mouth!
As you say make I chuk mouth. I go chuk am!
The Naira has been in free fall since last month. Had about 12.6% devaluation against dollar last month, not to mention the inflation that has increased to about 24.08% as of July last month, we don't know what this month will say but bro, the government will be stupid to sit down and let Naira go to ₦1,000 per a dollar, they did something and Tinubu had to bring another policy from the CBN and NNPC.
The NNPC had taken a loan but more on that later since this topic is limited to CBN new policy and that's the re-introduction of Bereau De Change, BDD as they call them.
This new policy doesn't change anything, the IE windows remain the same. The government realized that their is hardship and the dollar they are getting is making it worse. So they had to call back the BDD to business because there is no any way the FX market will work without them.
Now, the policy be say, they are allow back to their business but there is something missing from your point. The -2.5% and +2.5% which means say they cannot sell dollar with a profit above 2.5% of what they bought, if they buy at ₦750 per a dollar, the profit from that must not exceed 2.5% and they must also account for all the dollar they buy and sell.
The thing that remain unclear from the report is weather the CBN will be the one to be given them the dollar or not but I assume to be so if they want them to operate in that sequence.
This are just temporary measures for the government to reduce the demand of dollar from the parrallel market and if there is enough, we will have little demand and dollar will be stablise, atleast for now.