One Dollar - One Naira: After Buhari's Election Naira Extremely Falls

One Dollar - One Naira: After Buhari's Election Naira Extremely Falls

After the inauguration of President Muhammadu Buhari about a month ago, the naira demonstrates a strong fall against the dollar from 180 to 222.

According to analysts, the future of the naira looked bleak because  increasing business activities have made importers and investors move their foreign exchange demands to the parallel market, putting pressure on the naira at the segment.

The source notes that the Central Bank of Nigeria has been depleting the external reserves in a bid to defend the local currency. Punch reports that the external reserves fell to $29.03bn on June 22, from $29.8bn on May 18, data from the CBN website showed.

Experts also add that the latest movements in the external reserves meant that the naira was beginning to come under some fresh pressure.

Bloomberg says that for naira stabilization central bank banned importers from using the foreign-exchange market for some goods.

"Forty categories of goods ranging from private jets to rice, wheelbarrows and Indian incense are covered by the edict, according to a statement on the Central Bank of Nigeria’s website. It also stopped Nigerians from using the interbank market to buy Eurobonds and foreign shares. Importers or investors purchasing the listed items “shall do so using their own funds," it notes.

Director of the central bank’s trade and exchange department said: “The implementation of the policy will help conserve foreign reserves as well as facilitate the resuscitation of domestic industries and improve employment generation”.

On March 23, 2015  Buhari said he would ensure that the Naira was equal to the dollar in value, if voted into office.

And Nigerians remember this fact.  

Source: Legit.ng

Authors:
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Khadijah Thabit (Copyeditor) Khadijah Thabit is an editor with over 3 years of experience editing and managing contents such as articles, blogs, newsletters and social leads. She has a BA in English and Literary Studies from the University of Ibadan, Nigeria. Khadijah joined Legit.ng in September 2020 as a copyeditor and proofreader for the Human Interest, Current Affairs, Business, Sports and PR desks. As a grammar police, she develops her skills by reading novels and dictionaries. Email: khadeeejathabit@gmail.com

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