CBN Governor secret memo leaked Naria to exchange at N80 to a Dollar!!
CBN governor, Mallam Sanusi Lamido Sanusi may have concluded plans to inflate the value of the Naria by over 120%.
In a leaked memo by internal CBN officers, the governor is pursuing a two pong approach whereby once reasonable amount of the debts owed the five indicted banks has been recovered, the apex bank will introduce a shock treatment to the foreign exchange market by flooding the market with dollars.
The move is intended to catch currency speculators off guard and severely hamper their ability create scarcity in the foreign currency market through hoarding as well as reduce pressure on the exchange market.
The Naria is expected to appreciate to N80 to the US dollar at the end of the two month exercise. It is then expected that subsequent sell-off will help bridge the gap between the official and parallel rates of exchange.
Although the memo was discussed with close cabinet officials of the apex bank, inside sources may have leaked the information to aid some of their black markets operators who have already begun unloading their stock of foreign currency quietly to minimize losses in the coming week when the policy is implemented.
Strategically, to success of the policy, the CBN will continue to promote tight liquidity situation where the banks, already in dire straits to boost their capital base have little appetite for trading in foreign currency.
Moreover, the crashed interbank rates have diminished the favorable margin previously enjoyed by commercial banks that engage in purchasing funds at the Retail Dutch Auction System (RDAS) for resale at the interbank market.
Also the undergoing liquidity crisis in commercial banks may have affected their ability to influence trading at the Retail Dutch Auction System (RDAS) since most of their high-end forex users in the Oil and capital markets are running around for funds to offsets debts owed the five ailing banks that the CBN recently sacked their CEOs and hence are currently not any position to demand forex for any importation.
However the governor may already have let the cat out of the bag when he warned a fortnight ago that CBN would defend the Naria and that "Speculators will lose heavily when, expectedly, the rates come down and stabilise".
Sources inside ASO rock, confirmed that the presidency has already given approval to the plan and even members of the presidency have been secretly dumping their foreign currency holdings to curtail loses when the plan is implemented next week.