Nigerian currency depreciates against US It seemed to accelerate. After falling to a new low of 900 naira per dollar. The currency continues to depreciate after the Economic and Financial Crimes Commission raided a suspected illegal foreign exchange dealer.
Continued US Dollar Shortage
After the Central Bank of Nigeria (CBN) announced its intention to put newly designed naira notes into circulation on 27 October, The currency’s parallel market exchange rate against the dollar fell by almost 20%. From an exchange rate of around N760:$1 at the time of the announcement, Naira has fallen to his 900:1 all-time low by November 2nd.
As noted in some local media reports, after January 31st, CBN will issue new banknotes, replacing the current 100, 200, 500 and The decision to phase out the 1,000 Naira banknote has set off a US dollar buying rush in 2023. According to one report, a shortage of the US dollar in both the official and parallel markets is putting pressure on the naira.
Despite being endorsed by President Muhammadu Buhari, CBN’s currency redesign plan appears to have failed to stop the naira from depreciating.
Nigerian economist Andrews Elueni, managing director of Flawless Capital Limited, said recently that the cited naira exchange was able to reach his N1 ,000: $1 mark by the end of 2022.
“By the end of the year he will reach N1,000 because there is a lot of fraud and corruption in the system,” Erueni was quoted as saying. I’m here.
Gap between official and parallel markets widens to 450
Parallel markets see naira depreciation against dollar Despite the acceleration, the Nigerian Monetary Authority continues to peg the naira below $450.
Meanwhile, following the CBN announcement, Nigeria’s anti-corruption group, the Economic and Financial Crimes Commission (EFCC), said it would attack suspected illegal currency dealers. warned. Since then, according to local media reports, the EFCC has raided money changers in the Bureau accused of facilitating illegal foreign exchange activities.
According to one report, the Naira parallel market exchange rate was 840:1 when the EFCC swooped in. However, after more than 24 hours, the difference between the currency’s parallel exchange rate and the official market exchange rate he widened to a high of N450.
SUBSCRIBE HERE TO GET WEEKLY UPDATES ABOUT AFRICA NEWS IN YOUR INBOX:
Image Credits: Shutterstock, Pixabay, Wiki Commons