Naira experience further decline on Wednesday at the parallel market as the United States dollar was sold for N478. The Nigerian currency which traded at N475 for one dollar on Tuesday has come under pressure in recent days.
The Nigerian Currency closed at N470 last Friday and plunged to N475 on Monday.
According to the data from FMDQ Group, the naira declined by 0.31 per cent to close at 386 per dollar on Wednesday in the Investors’ and Exporters’ forex window.
Since August, the Central Bank of Nigeria has kept the official exchange rate at N379/$1, when the naira was devalued for the second time this year from 360 per dollar. It was first devalued to 360 in March from 306.
According to CBN, the nation’s forex reserves stood at $35.54bn as of November 17, down from $35.69bn on October 28.
The Managing Director/Chief Executive Officer, Financial Derivatives Company Limited, Mr. Bismarck Rewane optimistic that the CBN would do the needful because as long as forex is being rationed, there will be demand in other markets.
The foremost economist noted that the dollar had fallen against other currencies. He therefore concluded that he is very sure that the Central Bank of Nigeria will do all that is necessary to ensure the currency stays stable.