ANALYSTS have welcomed latest moves by the Central Bank of Nigeria (CBN) to retain the value of the Naira amid stiff competition from major global currencies but remain skeptical of the impact these would have on curbing the former's decline.
In an unprecedented move on Wednesday, the central bank pronounced the RDAS/WDAS (Retail Dutch Auction System/Wholesale Dutch Auction System) window closed with immediate effect.
After Wednesday's decision all foreign exchange demand will now be routed through the interbank market, suggesting that the Naira will eventually be determined by forces of supply and demand.
The CBN will sell United States dollars to the interbank market at a set rate of US$/NGN198 to ensure liquidity was readily available to meet legitimate demand.
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