As at this morning, N300 can buy a dollar at the open market, even when CBN had fixed the exchange rate at N198 to a dollar.
The implication is that the exchange rate is being determined by market forces and invariably making the mockery of the 2016 budget.
Not only are the market forces pulling down the naira, the Central Bank monetary policy, according to a Lagos Lawyer, Mr. Femi Falana (SAN) has also contributed largely to the devaluation and it must stop.
The CBN’s policy to make dollar a legal tender has weakened the naira so much that too much naira will have to chase a few dollars now.
Falana has thus filed a suit before the Federal High Court in Abuja on Wednesday, praying for an order restraining the Central Bank of Nigeria from allowing market forces to determine the exchange rate of the naira.
The senior advocate also asked the court in his suit, FHC/ABJ/CS/146/16, to direct the CBN to stop the use of the United States of America’s dollar as a legal tender in Nigeria.The suit was filed on behalf of Falana by a lawyer in his firm, Mr. Wisdom Elum.
He also alleged that the CBN had so “dollarised the economy” that the foreign currency had become a legal tender, with school fees as well as rents now being charged and paid in dollars “to the detriment of the economy.”
The lawyer, therefore asked the court to determine, “whether the monetary policy of the defendant, which allows market forces to fix and determine the exchange rate of the naira is not a violation of Section 16 of the CBN (Establishment) Act 2007 and Section 16 of the Constitution of the Federal Republic of Nigeria, 1999 as amended.”