The currency’s rapid depreciation is reportedly being fueled by Nigerians who are converting their savings from naira to the greenback. depreciation naira
The Nigerian central bank has accused currency speculators of being behind the local currency’s recent plunge to a new all-time low of N710 against the greenback. The leader of a Nigerian association of bureau de change operators insisted crypto trading may be to blame for the naira’s recent plunge in value.According to local reports, the parallel market exchange rate of the Nigerian currency against the greenback recently plunged to a new low of N710 per dollar.
Yet, despite the currency continuing depreciation on the parallel market, the Central Bank of Nigeria insists the naira’s official exchange rate against the dollar remains at approximately N424 for $1. In a statement following the naira’s latest fall, Osita Nwanisobi, the CBN’s director of corporate communications, blamed speculators for causing the currency’s recent fall. Nwanisobi nonethelessthat the central bank’s interventions such as the Naira for Dollar incentive scheme and the RT200 FX Programme are already helping Nigeria address its longstanding problem of foreign exchange shortages.
Resolving the country’s foreign exchanges helps to stabilize the naira’s exchange rate. Yet as a recent