The Central Bank of Nigeria (CBN) yesterday adjusted the value of the naira further down to N414.14 per dollar from N413.96/$1 on Thursday, data on the apex bank’s website shows. Having weakened the naira to N413.49/$1 on December 31, 2021, the CBN adjusted the local currency further down to N413.67 per dollar and N413.96/$1 on Tuesday and Thursday respectively. This means that by adjusting it to N414.14 per dollar yesterday, the regulator has now weakened the naira for the fourth time in eight days.
However, the naira gained marginally against the dollar on the Investors and Exporters’ (I&E) window yesterday, according to data from the FMDQ Security Exchange, as it closed at N416 per dollar compared with N423.25/$1 earlier in the day. Forex traders told Saturday Telegraph that the naira dropped to N572/$1 on the parallel market yesterday from N570/$1 on the previous day.
Speculation is rife in financial circles that the naira’s weakening on the official forex window suggests that the CBN might be gearing up to weaken the local currency. Analysts note that the country’s external reserves have been heading south in recent weeks. For instance, the reserves, which, as at November 30, stood at $41.19billion, had dropped to $40.52billion as at January 5 2022.
