Naira Drops as Exchange Rates in Nigeria to Be Unified

June 17, 2020June 17, 2020Christina Ngene

There has been an indication that the weakening reserves of Nigeria would necessitate conservation as the Minister of Finance Zainab Ahmed pointed out. She said that unifying the exchange rates will help the naira build-up from the dollar inflow.

With directives from the government and for a 12 month period, dollars would also be sold to the central bank. More so, deregulation of petroleum prices is going to be in place to help preserve oil profits.

This is, however, was followed by a 6.2% difference in naira and dollars with naira on the negative.

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With support from the CBN, the Naira is now back at 361 per dollar, the same rate where it closed on Tuesday, from 385 where it opened on Wednesday.

The multiple exchange rates system which Nigeria operates is a measure to control tension on the naira.

Dollar deficits often cause disaster on Africa’s biggest economy like oil price crash and weakening the local currency. The parallel market struggles to maintain its balance. But also in March, the CBN devaluated the naira when it modified its official rate by 15%.

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