NIGERIA’S CENTRAL BANK AND FIRMING.
The Nigerian Central Bank is a spokesperson for the Naira. It does not manage its currency as other Central Banks do with policies such as monetary easing and monetary tightening. It employs what Nigerians call, “sidon look policy” or observer policy.
It just lets the market sort itself out and makes announcements such as the Naira is firming against the dollar, and I guess “unfirming” against the dollar, if the Naira slides downwards against the dollar. It is time that we contracted the management of the apex bank to real experts possibly foreigners. The truth is the bitterest pill to swallow.