1 year ago
Just a fewer days aft plummeting to its worst speech complaint against the U.S. dollar ever, the Nigerian currency was trading astatine astir 820 units for each dollar connected Nov. 8, a study has said. An economist has suggested that the Central Bank of Nigeria’s arguable currency program is improbable to halt the naira’s depreciation oregon tame inflation.
EFCC’s Crackdown connected Currency Dealers
The Nigerian currency’s parallel marketplace speech complaint versus the U.S. dollar rebounded from an all-time debased — 900 units per dollar — seen astatine the commencement of the period to astir 805:1 by Nov. 8. Some reports person attributed the naira’s betterment to the Economic and Financial Crimes Commission (EFCC)’s crackdown against suspected amerciable overseas currency dealers.
As reported by Bitcoin.com News connected Nov. 5, the naira’s latest quick-fire depreciation was prompted by the Central Bank of Nigeria (CBN)’s caller 100, 200, 500, and 1,000 banknotes announcement.
While the cardinal bank’s program to regenerate aged banknotes with redesigned banknotes has won the backing of President Muhammadu Buhari, immoderate Nigerian experts, arsenic good arsenic the International Monetary Fund (IMF), person warned of the imaginable consequences of implementing the plan.
Exacerbating the Naira’s Woes
Yet, contempt the mounting disapproval and warnings, the CBN has stuck to its guns and volition reportedly commencement issuing the caller banknotes connected Dec. 15 arsenic planned. The cardinal slope has said each the banknotes that are acceptable to beryllium demonetized indispensable beryllium returned connected oregon earlier Jan. 31, 2023.
However, according to 1 Nigerian economist, Bismarck Rewane, for the CBN’s program to succeed, Nigerian banks volition request to speech banknotes worthy implicit $105 cardinal (87 cardinal naira) each day. Besides exacerbating the naira’s woes, Rewane reportedly said the CBN’s currency program volition not lick Nigeria’s ostentation problem.
Meanwhile, contempt the naira’s autumn to grounds levels versus the greenback connected the parallel market, connected Nov. 9 the currency was inactive pegged astatine astir 450 per dollar connected Nigeria’s authoritative forex market.
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Terence Zimwara
Terence Zimwara is simply a Zimbabwe award-winning journalist, writer and writer. He has written extensively astir the economical troubles of immoderate African countries arsenic good arsenic however integer currencies tin supply Africans with an flight route.
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