What does Naira Regulation means ?
Am gonna try to shed some light about this stuff, so that Nigerians will find it easy to understand the latest development on Dollar rate in the country.
Just like fuel subsidy so is this Dollar/Naira drama. For long FGN through CBN has been _regulating_ (kind of subsidized though) the dollar to keep the rate lower. But due to the long process it takes to get dollar from CBN and the lots of bureaucracies around it, people prefer to go to the black market to buy which therefore put high demand on the black market.
Based on law of economics, once demand is high the price will go up. That is what led dollar to the current black market price.
With this new policy however, CBN no longer _subside_ dollar. Each banks are to decide their selling price. As a result there will be less protocol in getting dollar from official channel.
So on the long run, the dollar market will self regulate itself…
Hope this help someone👌🏽