Nigeria’s currency has dropped down to a four-year low in the analogue market despite the Central Bank of Nigeria’s effort to improve the situation by ensuring financial institutions sell more dollars to customers, failed to reduce the gap between official and street rates in the nations economy.
The Nigeria’s currency rate has declined to a four-year low in the parallel market, with the banks aim to increase sales of dollars to customers in financial institutions.
Reports shows that foreign exchange market dealers were offering the naira at N502 per dollar as at yesterday, June 16th,2021, up from N500 last week, making it it’s weakest since February 2017.
The rate widens the spread between the official and the analogue market rate to 22%, when placed side by side with the spot rate of N411.13 a dollar as at noon yesterday.
The report further noted that Nigeria, has devalued its currency three times since March 2020, as lower oil income, which accounts for about 90% of dollar earnings putting pressure on external reserves.
The report also showed that some persons are switching their naira savings into dollars fearing further devaluation in the naira.
Mr. Osita Nwanisobi, C.B.N’s spokesperson, Bloomberg noted that the regulator met with banks’ Chief Executives last week over the matter with the lenders accepting to increase dollar supply and operate special accounts to meet the requirements of businesses and travelers.
The Central Bank of Nigeria aims to use loaners to make more foreign currency available to buyers, around the official rate of between N410 to N412 on the dollar to reduce pressure on the streets where rates are crashing from excess demand.