The CBN in recent months had injected dollars to the inter-bank and Bureau de Change foreign exchange market in its bid to sustain forex supply to different categories of users.
The Apex Bank auctioned $418 million at a marginal rate of N310 to a dollar, to airlines, agriculture, petroleum and raw materials sub sectors and also pegged currency rate for BTA, PTA and medical vacations.
Also, forex supply to the BDC was increased from 8,000 dollars per week to 10,000 dollars.
This translated to the appreciation of the Naira from an all time low of about N560 to a dollar, to N355 within two months.
But despite all these intevention, the naira is weakening against the US Dolalr.
Here are likely reasons why the currency keeps falling against major currencies at the parallel market:
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1. Alleged hoarding of the greenback by commercial banks
2. BDC operators violating operating guidelines – such as selling price at the black market segment.
3. Insufficient supply to the BDC segments and other stakeholders.
4. Information and market speculations
5. Political interference on monetary affairs
The Naira now sells at N405 to a dollar in the parallel market
The Naira now sells at N405 to a dollar in the parallel market
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