The Naira has recently sunk to a four-year low against the US Dollar, as the country’s central bank has weakened the national currency for the third time in 2020. However, there are reports that it could rise again early in the next year.
PHOTO: Pxhere
What Has Happened?
Strong demand for dollars and a lower than expected inward flow of foreign currency caused the Nigeria Central Bank (NCB) to take this action. It has led to the Naira falling to 500 per dollar in the parallel market.
The Abuja-based bank told money exchange operators that they can sell the Naira at a rate of 392 per dollar, which is a change from the previous figure of 386. Currency traders can buy a dollar at a cost of 390 Naira, which increased from the old figure of 384. In terms of international money transfers, the figure changed from 383 Naira for a Dollar, to 388.
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