The risks of Nigeria’s new foreign exchange policy regime

Nigeria effectively floated the naira on 20 June. From its pegged rate of N197/ N199 to the US$, the naira after the float is now trading at an average of N284 to the US$, a depreciation of 42%. What are the risks posed to the Nigerian economy by CBN’s decision to float the naira? In as much as the decision to float the naira was the best decision that the CBN could have made, the decision, like any other economic decision comes with its risks. Here are some the things that could go wrong with the decision to float the naira;