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Naira exchanges for 475/$ as forex scarcity persists

The naira on Friday exchange to the dollar at 475/$ at the parallel market as foreign exchange scarcity persisted.

Continued volatility experienced in crude oil prices and low demand had continued to take its toll on the naira as exchange rate worsened.

Recently, then Central Bank of Nigeria officially changed the exchange rate of the naira to the dollar from N361 to N379.

The apex bank had earlier expressed its decision to unify the exchange rates in the country as the market defied interventions.

During the last Monetary Policy Committee meeting, the Deputy Governor, Financial Systems Stability Directorate, Aisha Ahmad, said the exchange rate was still being affected by volatility in crude oil prices.

She said, “Slight recovery in crude oil prices from $34.8/bn to $43/bn between May 28 and July 18, 2020 provide a little bright spot, although it remains low and volatile, with negative implications for exchange rate stability and fiscal consolidation.

“It will be important going forward, to improve supply and liquidity in the foreign exchange markets to preserve price stability.

“Fiscal initiatives such as the Economic Sustainability Plan and National Gold Purchase Program are steps in the right direction.”

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