BUSINESS: One Dollar - One Naira: After Buhari's Election Naira Extremely Falls
After the inauguration of President Muhammadu Buhari about a month
ago, the naira demonstrates a strong fall against the dollar from 180
to 222.
According to analysts, the future of the naira looked bleak because
increasing business activities have made importers and investors move
their foreign exchange demands to the parallel market, putting
pressure on the naira at the segment.
The source notes that the Central Bank of Nigeria has been depleting
the external reserves in a bid to defend the local currency. Punch
reports that the external reserves fell to $29.03bn on June 22, from
$29.8bn on May 18, data from the CBN website showed.
Experts also add that the latest movements in the external reserves
meant that the naira was beginning to come under some fresh pressure.
Bloomberg says that for naira stabilization central bank banned
importers from using the foreign-exchange market for some goods.
"Forty categories of goods ranging from private jets to rice,
wheelbarrows and Indian incense are covered by the edict, according to
a statement on the Central Bank of Nigeria's website. It also stopped
Nigerians from using the interbank market to buy Eurobonds and foreign
shares. Importers or investors purchasing the listed items "shall do
so using their own funds," it notes.
Director of the central bank's trade and exchange department said:
"The implementation of the policy will help conserve foreign reserves
as well as facilitate the resuscitation of domestic industries and
improve employment generation".
On March 23, 2015 Buhari said he would ensure that the Naira was
equal to the dollar in value, if voted into office.
ago, the naira demonstrates a strong fall against the dollar from 180
to 222.
According to analysts, the future of the naira looked bleak because
increasing business activities have made importers and investors move
their foreign exchange demands to the parallel market, putting
pressure on the naira at the segment.
The source notes that the Central Bank of Nigeria has been depleting
the external reserves in a bid to defend the local currency. Punch
reports that the external reserves fell to $29.03bn on June 22, from
$29.8bn on May 18, data from the CBN website showed.
Experts also add that the latest movements in the external reserves
meant that the naira was beginning to come under some fresh pressure.
Bloomberg says that for naira stabilization central bank banned
importers from using the foreign-exchange market for some goods.
"Forty categories of goods ranging from private jets to rice,
wheelbarrows and Indian incense are covered by the edict, according to
a statement on the Central Bank of Nigeria's website. It also stopped
Nigerians from using the interbank market to buy Eurobonds and foreign
shares. Importers or investors purchasing the listed items "shall do
so using their own funds," it notes.
Director of the central bank's trade and exchange department said:
"The implementation of the policy will help conserve foreign reserves
as well as facilitate the resuscitation of domestic industries and
improve employment generation".
On March 23, 2015 Buhari said he would ensure that the Naira was
equal to the dollar in value, if voted into office.
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