Human Rights

Nigeria: Central Bank Intervenes As Naira Records All-Time-Low

The Central Bank of Nigeria (CBN), again, intervened to save the naira yesterday, as the currency hit all-time-low at 350 to a dollar equivalent to 77.67 per cent dropped at the inter-bank foreign exchange market.

The fall was the lowest value since the commencement of the flexible exchange rate policy introduced in June 2016.

The bottom value was reached by naira in a single inter-bank market trade of $100,000 in the absence of enough liquidity of the foreign currency, Reuters has reported.

Intervention by the CBN, however, lifted naira back to its feet to close at N310.50 to the dollar at the end of the session that witnessed a total transaction of $6.86m.

The naira has been under pressure since the central bank floated the currency in June to allow it trade freely on the interbank market. The currency has been hit by a plunge in oil prices, Nigeria’s economic mainstay, which caused foreign investors to flee bond and equities markets.

At the Bureau de Change the naira appreciated to 382 to a dollar and pound sterling remain at N500 as at close of business yesterday.

Source: Daily Trust.