The Nigerian naira keeps falling against the dollar. It seems as if the trend is determined to continue weekly, as the naira now goes about 183 point something against the dollar this Tuesday, as the Central Bank of Nigeria made concerted efforts to sell more dollar at the forex auction. Meanwhile, the request for dollar has grown in the past few weeks.
Recall that the Bank on its own accord had devalued the naira, maybe thinking that the interbank market will trade higher.
Recent happenings show that the naira is sometime stable against the dollar. For example, recently, the naira opened at 182 to a dollar, hits on 184.50 sometime later, during the same day, and closed at 181 on that same day. But on the following day, the naira closed at 183 to the dollar at the interbank market.
Even the call by the apex bank for commercial banks to hold on to a certain percentage of their shareholder’s funds in foreign currency could not solve the problem, this in contrast with an earlier directive given by the apex bank to the commercial banks.
However, the major strike against the naira is the fall in oil prices and will continue to be if nothing really worthwhile is done about the falling oil prices.