The continuous fall in the price of crude oil in the international market and the recent devaluation of the nation’s currency, the naira, are putting serious pressure on the economy, with the currency experiencing a free fall. The naira exchanged for between 192 and 194 to the United States dollar at the parallel or street market on Friday. Earlier in the week, it sold for N188 against the dollar at the same market a banker friend gathered that the pound and euro sold for between N294 and N296, and N236 to N238, respectively on the streets of Lagos on Friday. The continued fall in crude oil price had forced the Central Bank of Nigeria to use a huge chunk of the nation’s external reserves to defend the naira. The persistent depreciation of the naira, however, forced the CBN to on November 25 devalue the currency against the dollar by eight per cent from N155 to N168. The central bank thus expected the naira to sell against the dollar for between N160 and N176. However, the naira has been selling outside the CBN target band at the interbank forex market (where the banks sell to themselves and their customers), a situation that has fuelled speculation among analysts that the bank may be forced to devalue the currency soon again. As of Friday, the naira closed against the dollar at N184.50 at the interbank market. The continued fall in the value of the naira forced the CBN to on Thursday introduce new rules aimed at halting the slide. It barred banks from holding any amount of their funds in dollars. It also directed the banks and members of the public who buy dollars from it to use them within 48 hours or return the unspent funds. Is a pity every body is dance politic forgetting the economic of this country,,,,,,,
Posted on: Sat, 20 Dec 2014 21:30:17 +0000
Trending Topics
Recently Viewed Topics
© 2015