- 'Basketmouth,' a comedian, has have his say on Naira depreciation against the US dollar despite efforts made by CBN
- He expressed surprise as to why all Nigerian money denominations together exchanges for less than $5 note
- Since the beginning of 2021 CBN has introduced various regulations to help the value of Nigerian currency
Nigerian comedian, Bright Okpocha better known by his stage name Basketmouth has called for the return for the use of cowries.
In Nigeria, Cowry shell is believed to be the most-widely known pre-coinage currency.
Using his verified Facebook social media account, he requested Nigerians to add all Nigerian currency denominations from N5 to N1000, which he claimed is less than $5.
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Using the exchange rate of Friday, a $5 dollar will exchange N2,075.
While at the black market, $5 will be exchanging at N2,850 at an exchange rate of N570/$
CBN fight to keep Naira strong
Nigerian currency in 2021 has experience a volatile movement which has resulted to the rise in the price of goods in the country, given the fact Nigerian is an import dependent country.
CBN in a bid to strengthen the Naira it introduced various policies which include the clampdown on Bureau De Change operators, pumping more dollars to official markets to ensure demands are met and also the introduction of eNaira(digital currency).
CBN governor Godwin Emefiele speaking on the decision to stop forex sales to the BDCs noted with disappointment and great concerns that the BDCs, which is to serve the retail end-users who needed 5,000 dollars or less, had defeated their purpose of existence to provide forex to retail user, but instead, had become wholesale and illegal dealers.
Emefiele said they had become wholesale dealers and illegally transacted FX to the tune of millions of dollars per transaction.
The BDCs, he observed, had continued to make huge profits while Nigerians suffered in pain.
CBN defending Naira with more dollars to the official market
Another policy carried out by CBN in 2021 is the provision of dollars to the official markets.
In the first seven months of 2021(January to July) the Vanguard reports that the Central Bank of has injected $2.1 billion into the Investors and Exporters (I&E) window to meet dollar demand.
Despite the various policies carried out Naira which started 2021 officially at N381 to a dollar has dropped in value by 8.95 percent using the last exchange rate at the investors and exporters window.
Naira continues free-fall at official markets
Legit.ng in an earlier report explained how the rise in oil price, the successful Eurobond, and also the International Monetary fund(IMF) will help CBN fight to defend Naira.
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The reported noted that with external reserves on the rise CBN will be able to fight off pressure for dollars
With CBN having enough dollars to meet demands in the country, black-market become more and more irrelevant.