- The Naira has crashed against Dollar but stayed unchanged against Pound and Euro at parallel market
- Trading at the interbank window saw the Naira close at N305.85 to the Dollar
- Nigeria has five rates: the official rate, the black market, a rate for Muslim pilgrims going to Saudi Arabia, a retail rate set by licensed exchange Bureau De Change, and a rate for foreign school fees
The Nigerian Naira on Thursday, April 27, crashed slightly against the American Dollar at the parallel market.
The Nigerian currency lost two points to close at N390 to the Dollar from the previous rate of N388. While the local currency stayed unchanged against the Pound Sterling and the Euro, trading at N495 and N415 respectively.
At the Bureau De Change (BDC) window, the Naira was sold at N362, while the Pound Sterling and the Euro closed at N490 and N420, respectively.
Trading at the interbank window saw the Naira close at N305.85 to the Dollar.
But the Naira appreciated marginally at the investment and export window, as it closed at N379.04, from the N379.89 it opened earlier today.
Traders at the market were hopeful that the Naira would bounce back as the CBN sustained liquidity boost at the BDC subsector.
However, analysts believe that the move by Nigeria to weaken the Naira for investors may still struggle to attract Dollars, unless it scraps its system or multiple exchange rates.
The central bank said on Monday, April 24, that it would allow investors to trade the Naira at rates determined by the market - a move intended to improve the supply of Dollars, but one that introduced yet another exchange rate.
NAIJ.com can report that Nigeria has five rates: the official rate, the black market, a rate for Muslim pilgrims going to Saudi Arabia, a retail rate set by licensed exchange Bureau De Change and a rate for foreign school fees.
And according to Razia Khan, Africa chief economist at Standard Chartered Bank, the move to weaken the Naira for investors is unlikely to attract sizeable inflows until there is harmonisation between the different markets.
He added that the new policy will mask pressure on the naira as the central bank tries to avoid a currency devaluation.
Recall that the International Monetary Fund has urged Nigeria to scrap its multiple exchange rate regime to revive its economy.
Nigeria is battling a currency crisis brought on by low oil prices, which has tipped its economy into recession and created chronic dollar shortages. It wants to attract foreign investors and at same time maintain a strong Naira to ward off inflation.
Watch Nigerians reacting to Whistle Blowing policy by FG