Flexible FX rate further ruins Naira, now N378 to US Dollar

July 23, 2016
The Naira on Friday depreciated further against the dollar, Pound Sterling and the Euro in all segments of the market, an indictment of the flexible exchange rate as a big policy failure.

At the parallel market, the Naira shed 3 points to exchange at N378 to the dollar at the close of trading Friday afternoon, from N375 it closed on Thursday; representing a depreciation of 0.8 per cent.

It also weakened further against the Pound Sterling and the Euro as it exchanged at N487 and N405, from N485 and N405 it traded on Thursday respectively.

However, the Nigerian currency maintained losses at N375, N485 and N405 respectively against the dollar, Pound Sterling and the Euro at the Bureau de Change (BDC) segment of the market.

The naira also performed poorly at the interbank window as it crashed further to N307.98 to a dollar from N295.38 it traded on Thursday.

Currency traders expressed worry over the extension of losses of the naira against other currencies in nearly all the segments of the foreign exchange market.

They, however, called on the Central Bank of Nigeria (CBN) to urgently intervene in the market to save the naira from further crash.

On June 20 the CBN began the implementation of the flexible exchange rate policy which many analysts hailed as the magic wand that would shore up the value of the naira.

Four weeks into its implementation, the naira appeared lonely in the face of its travails by macroeconomic elements as forces beyond it seemed bent on prolonging its depreciation.

Stakeholders count on the Monetary Policy Committee (MPC) meeting of the CBN holding next week to pull the right monetary policy lever needed to salvage the naira.

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Steven Rich
Sep 17, 2018:
Well done
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