OFFICIAL: Naira Hits An Alltime Low Against Dollar, Selling At N282
The Naira hit a record low of 282 to the US Dollar on the unofficial market on Monday after the Nigerian Central Bank (NCB) announced that it would stop sales to non-bank foreign exchange operators, especially bureaux de change operators.
Governor of the NCB Godwin Emefiele said foreign reserves stood at around $28 billion compared with $37 billion in June 2014, and that the bureaux de change operators were depleting them at a rate of $28.4 million per week.
“This is a huge hemorrhage on our scarce foreign exchange reserves, and cannot continue,” Emefiele told a news conference in the capital Abuja.
The decision to allow commercial banks to accept cash deposits of foreign currency reverses the restriction imposed last year when such deposits were banned in order to curb currency speculation.
It comes days after a visit by the head of the International Monetary Fund, Christine Lagarde, who told lawmakers that the IMF does not support foreign exchange restrictions.
On 8 January, the Naira hedged up slightly against the dollar on the parallel market amid calls for the apex bank to relax its strict foreign exchange policy.
The Naira appreciated by 0.4% on Friday afternoon as it exchanged for N277 against the dollar from N278 it traded for previously.
However, the Naira closed at N197 to the dollar at the official interbank window.
If you want to keep track of the issues and events that will effect the economy and the strength of the Naira, you can read the bi-weekly updates on the price of oil and the Naira – US Dollar exchange rate on the parallel market.
Source
Governor of the NCB Godwin Emefiele said foreign reserves stood at around $28 billion compared with $37 billion in June 2014, and that the bureaux de change operators were depleting them at a rate of $28.4 million per week.
“This is a huge hemorrhage on our scarce foreign exchange reserves, and cannot continue,” Emefiele told a news conference in the capital Abuja.The decision to allow commercial banks to accept cash deposits of foreign currency reverses the restriction imposed last year when such deposits were banned in order to curb currency speculation.
It comes days after a visit by the head of the International Monetary Fund, Christine Lagarde, who told lawmakers that the IMF does not support foreign exchange restrictions.
On 8 January, the Naira hedged up slightly against the dollar on the parallel market amid calls for the apex bank to relax its strict foreign exchange policy.
The Naira appreciated by 0.4% on Friday afternoon as it exchanged for N277 against the dollar from N278 it traded for previously.
However, the Naira closed at N197 to the dollar at the official interbank window.
If you want to keep track of the issues and events that will effect the economy and the strength of the Naira, you can read the bi-weekly updates on the price of oil and the Naira – US Dollar exchange rate on the parallel market.
Source
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