Foreign Exchange Why Naira is weak against Dollar

One of the reasons given for the weakness of the Naira is the over-reliance of Nigerians on the US dollar.

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A trader changes dollars with naira at a currency exchange store in Lagos February 12, 2015. REUTERS/Joe Penney play A trader changes dollars with naira at a currency exchange store in Lagos February 12, 2015. REUTERS/Joe Penney
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A training organized by the First Bank of Nigeria (FBN) has shed some light on why the Nigerian Naira is weak against the dollar.

One of the reasons given is the over-reliance of Nigerians on the US dollar, according to Business Day.

According to John Coppock, financial journalist and investment writer for the Dutch Asset Management Group, Robeco, another reason for the weakness of the naira is the high growth in the country which strongly contrasts with a rigid domestic economy.

Coppock stated further that Nigeria needs to diversify its economy and depend less on the greenback in other to improve it economy as well as strengthen its currency.

The naira has suffered major decline in recent times and the Central Bank of Nigeria (CBN) has restricted the spending of dollars by Nigerians abroad in order to strengthen the currency.

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