ADVERTISEMENT

Currency still costs more on the street two weeks after float

The decision of the Central Bank of Nigeria (CBN) float the Naira received mixed reactions and the Naira lost about 67% in value on the now official interbank market following the policy change.

These questions, and many more, have shaped the narrative of what is now a Nigerian economy clutching tightly to the threads of survival. As it stands, everything is wrong with Nigeria, and it's currency is a major crumbling pillar.

The decision of the Central Bank of Nigeria (CBN) float the Naira received mixed reactions and the Naira lost about 67% in value on the now official interbank market following the policy change.

ADVERTISEMENT

Since then, the Naira, previously pegged at N197-199/Dollar by the apex bank, has traded between N280-282/Dollar on the official market. This new rate was made possible by the strategic intervention of the CBN along with market forces of supply and demand, something the apex bank hopes will strengthen the Naira in the long run.

On the parallel market, the floating of the Naira has not had much effect on the value of the Naira hitting a positive stride. This morning, Monday, June 4, 2016, $1 will get you N351 on the parallel market which is around the same number the currency was trading even before the policy change. This means that, despite the efforts of the CBN, the Naira still costs more on the street than on the official market.

After the Brexit vote, the Naira gained massively against the Pounds Sterling but has since lost much of the gain to trade at N467/Pound on the parallel market. The Euro also gained against the Naira, coming in at N385/Euro.

Economists and other stakeholders in the industry think it's too soon to make a definite call on whether the decision to float the Naira was the right one or not. However, despite making over $700 billion in 17 years of oil sale, Nigeria still has a 19.3 million housing gap, a 40,000MW power gap, a $75 billion infrastructural deficit and many more. We will have to wait and see if the Naira float will have any impact on these or if, like many before it in the past, this is just another misguided policy from the CBN.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

You can protest but don’t destroy — Lagos Govt warns against repeat of #EndSARS

You can protest but don’t destroy — Lagos Govt warns against repeat of #EndSARS

I've always belonged to the APC - Bwala reiterates support for Tinubu

I've always belonged to the APC - Bwala reiterates support for Tinubu

France struggles with its hijab rules for Olympics opening ceremony

France struggles with its hijab rules for Olympics opening ceremony

Dangote Refinery must be protected from all threats - Kwankwaso warns FG

Dangote Refinery must be protected from all threats - Kwankwaso warns FG

Borno protesters storm Abuja, demand reversal of Ndume's sack by Senate

Borno protesters storm Abuja, demand reversal of Ndume's sack by Senate

Matawalle donates ₦5m to family of his ex-DG of Protocol

Matawalle donates ₦5m to family of his ex-DG of Protocol

Ohanaeze Ndigbo youth body hails Tinubu for SEDC Act

Ohanaeze Ndigbo youth body hails Tinubu for SEDC Act

Navy arrests 2 oil thieves for operating illegal bunkering sites in their homes

Navy arrests 2 oil thieves for operating illegal bunkering sites in their homes

Tinubu signs bills to accelerate development across geo-political zones

Tinubu signs bills to accelerate development across geo-political zones

Pulse Sports

Ronaldo vs Messi: Chelsea legend N'Golo Kante wastes no time in picking the GOAT

Ronaldo vs Messi: Chelsea legend N'Golo Kante wastes no time in picking the GOAT

Paris 2024: Okocha, Messi, Eto'o and 8 legends that have won Olympics football gold medal

Paris 2024: Okocha, Messi, Eto'o and 8 legends that have won Olympics football gold medal

Usain Bolt shuts down Noah Lyles's bullish character speaking with Nigerian legendary footballer Mikel Obi

Usain Bolt shuts down Noah Lyles's bullish character speaking with Nigerian legendary footballer Mikel Obi

Osimhen to get ₦7 billion salary increment with PSG move

Osimhen to get ₦7 billion salary increment with PSG move

Bukayo Saka and Kanu model Lagos-themed Arsenal away jersey for the 2024/25 season

Bukayo Saka and Kanu model Lagos-themed Arsenal away jersey for the 2024/25 season

Michelle Alozie Net Worth: Age, Profile, Career, Salary, Husband, How Rich is she in 2024?

Michelle Alozie Net Worth: Age, Profile, Career, Salary, Husband, How Rich is she in 2024?

ADVERTISEMENT
ADVERTISEMENT