‘CBN lacks experience to manage naira float’ — EIU predicts reversal of FX unification policy | TheCable

The Economist Intelligence Unit (EIU), an arm of The Economist of London, has predicted that the Nigerian government will go back to a system where they have more control over the exchange rate.

Last month, the Central Bank of Nigeria , complying with the federal government’s directive,

The EIU said the CBN, which manages the country’s money, doesn’t have much experience handling a flexible exchange rate system.“The CBN lacks experience in conducting monetary policy under a float, and the need to control rapidly increasing inflation will become more acute over time,” EIU said. The research firm said that there is currently a shortage of foreign currency in the country, especially when it comes to fulfilling demands for foreign exchange through Form A and M.

The report also projected that because of the unstable exchange rate and how it affects people’s lives, the naira will lose its value more slowly than expected in the medium to long term.

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