By Sahabi Abdul
The Central Bank of Nigeria ended its defense of the naira on Wednesday, ending his predecessor’s stance of keeping the currency strong, which created a multiple exchange-rate system and spawned corruption.
The naira fell more than 40 percent from its opening position of 473.83 to close at 664.04 in the Importer and Exporters Window that had recently served as the official rate. Forward rates at a point traded as low as 790 to a dollar during the course of the day.
It was yet another sign of departure from the ways of former President Muhammadu Buhari, coming just days after he fired Godwin Emefiele as central bank governor and put him under arrest.
With the latest act of asking banks to source foreign exchange where they could as sell at whatever price dictated by demand, Tinubu is ramping up the application of bitter medicines in quick other in the hope that things can only get better afterwards.
With the ending of fuel subsidy in his first day in office and floating the naira a fortnight later, Tinubu has activated two major inflationary triggers. At a time his legitimacy is under question following disputed presidential elections, the president has chosen to bludgeon his way through and sear himself into the consciousness of Nigerians for what it is worth.