Naira to Dollar Crashes Further, Defying CBN’s Interventions

Naira to Dollar: Naira Plunges to over N1,500/$ Amidst CBN’s Interventions

The Naira’s downward spiral continues as it traded at N1,510 to a dollar at the parallel market and 1,466.31 at the official market, despite the Central Bank of Nigeria’s (CBN) efforts to stabilize the currency.

The dollar-to-naira exchange rate surged by N40 between Thursday and Friday, having closed at N1,426 to a dollar earlier. The CBN had supplied dollars to Bureau De Change (BDC) operators to boost liquidity, but the demand for dollars remains high, causing the rate to increase. The naira has been rated the world’s worst-performing currency over the last month, according to a Bloomberg report.

Experts Weigh in on Naira Crisis

The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Aminu Gwadabe, attributed the depreciation to inadequate dollar supply and called for amnesty for those hoarding foreign currencies.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, emphasized the need for a framework to stabilize the exchange rate, citing supply and demand imbalance as the fundamental issue. Economist Dr. Oluseye Ajuwon stressed the importance of tracing the source of foreign currency to address the crisis.

CBN’s Interventions

The CBN had sold dollars at a discounted rate of N1,021 per dollar in April and N1,301/$ in February, reducing the allocation by 50% and selling FX at N1,251/$1.

Naira to Dollar Fall Continues as USD Supply Falls to All-Time Low at Forex Market

The bank also cleared foreign exchange backlogs, including airlines’ trapped funds, and took action against unregistered BDC operators. Despite these efforts, the naira continues to depreciate, highlighting the need for more effective solutions.