The naira has depreciated against the dollar as the CBN allowed banks to buy money

The naira fell as the dollar weakened on Wednesday at the traders’ and exporters’ market, trading at 664.04 per dollar.

NAN reports that the country’s currency fell 40.78% from 471.67 naira to the dollar on Tuesday. The devaluation followed a directive by the Central Bank of Nigeria (CBN) to banks to remove the naira from the windows of traders and exporters.

This directive will allow the national currency to be freely distributed in relation to the dollar and other world currencies. The opening rate stood at 473.83 naira to the dollar on Wednesday.

The exchange rate of N791 to the dollar was the highest rate recorded in the day’s trading before it stood at N664.04. The naira sells for about four hundred and sixty one to the dollar in the day market.
A total of 193.33 million dollars was exchanged on Wednesday at the government office for investors and exporters.

Meanwhile, Professor Ndubisi Nwokoma who is the director of the Center for Economic Policy Analysis and Research at the University of Lagos said that the CBN’s order to distribute the naira for free is a good development. “The decision of the CBN is a good development, it is hoped that unnecessary judgments (back and forth) will be removed from the market.

“We expect the exchange rate to be lower as the investment of foreign capital increases, following these. “The negative side is that many assets or foreign sectors linked to the value of the Naira, such as foreign debt, among others, will improve with little impact on inflation.

“The impact of the increase may not be significant, because many economic operators first receive foreign currency through similar markets,” he said.