There is decreasing possibility of stability in the nation’s foreign exchange market, no thanks to worsening liquidity crisis arising from unintended consequences of recent reforms in the market.
Since the Central Bank of Nigeria (CBN) announced the unification of the FX windows in June, the local currency has been struggling against major currencies. Although the policy has earned the apex bank kudos from financial analysts, the subsequent unintended consequences have had detrimental effects on the economy.
