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Economy and Business

Devaluation looms as Naira declines to N380/$1 at I&E window, parallel market

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The Nigerian naira declined to N380 per dollar at the I&E – Investors’ & Exporters’ FX Window and the parallel market in a move seeing the Central Bank Of Nigeria (CBN) devaluing the local currency.

On Friday, traders at the Investors’ & Exporters’ FX Window said the central bank allocated naira at N380 per dollar. Market analysts believed the intervention of CBN at the I&E window means a technical devaluation to give room for market realities.

The rate was against the N366/$1 the local currency traded on the I&E window since it was created.

At the parallel market, the currency also lost N5 to trade at N380 to the dollar, N475 to pound sterling, and N414 to the Euro. This is the second time in two weeks that the local currency will trade above the usual price on the street.

The official rate closed at N307/$, according to market FMDQ market analysis, seen by POLITICS NIGERIA.

Panic in the FX market

Fears surrounding coronavirus and dwindling crude oil prices continue to hurt the Nigerian economy.

Last week, the Central Bank of Nigeria (CBN) dismissed insinuations over the devaluation of the naira, blaming market spectators for panic.

Although the apex bank admitted that the outbreak of the coronavirus will lead economic slowdown, fall in the price of crude oil, and less inflow of dollars into Nigeria, the bankers’ bank said the size of the country’s foreign exchange reserves remains robust and comfortable, “given the current realities of Nigeria’s genuine and legitimate FX demand.”

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