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Dutch Auction: Matters Arising.
(From Vanguard (Nigeria): AAGM)
Byline: Emeka Anaeto
EXPECTEDLY the Dutch Auction foreign exchange market system has generated more heat than the problems that led to its introduction a week ago.
Central Bank of Nigeria (CBN) had presented what appeared to be a 'sound' logic as the bases for the auction system and hoped that the economy, the market and the operators will understand and play along the thinking of the apex bank.
But with the results of the first two auctions held last week CBN's expectations appeared to be elusive while the 'sound' logic now looks like artistic impression.
Yet it does no one good to just dismiss the Dutch auction and go for its scrapping at a time the economy and the financial …
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