Just a few after the worst exchange rate plunge Days later against the US dollar so far, the Nigerian currency was trading at about 820 units to the dollar on Nov. 8, the report said. Economists have suggested the Nigerian central bank’s controversial monetary plan is unlikely to stop the naira’s decline or keep inflation in check.
EFCC crackdown on currency dealers
Nigerian currency’s parallel market exchange rate against the US dollar fell from a record low of 900 units per dollar to I rebounded. Some reports attribute the naira’s recovery to a crackdown on illegal foreign exchange dealers by the Economic and Financial Crimes Commission (EFCC).
As reported by Bitcoin.com News on Nov. 5, the Central Bank of Nigeria’s (CBN) release of its new 100, 200, 500, and 1,000 banknotes marked the Naira’s latest rapid facilitated the decline.
The central bank’s plan to replace older banknotes with new designs won the support of President Muhammad Buhari, but some Nigerian experts and the International Monetary Fund (IMF) About the possible consequences of carrying out theplan I warned you about.
Exacerbating Naira’s predicament
But despite mounting criticism and warnings, CBN has stuck with its guns. , reportedly to issue new banknotes on December 15 as scheduled. The central bank has said that all deprecated notes must be returned by January 31, 2023. Nigerian banks have to exchange more than $105 million (87 billion naira) in banknotes every day. Besides exacerbating Naira’s predicament, Lewane reportedly said CBN’s currency plan would not solve Nigeria’s inflation problem.
Meanwhile, on the official Nigerian forex market on November 9, the naira was still trading at about 450 per dollar, despite the naira declining to record levels against the US dollar on the parallel market. was fixed.
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