Currency loses 31% in value on second day of new CBN float policy

folarin okunola

June 21, 2016 12:06 PM

The Naira also depreciated on the parallel market where it closed at N346/Dollar, down from about N330-335 its traded at on Friday.

CBN FX policy infographic

Since trading began yesterday on the new CBN forex policy to float the Naira, the currency has now plunged by 31% to trade at N288/Dollar, down by 4-6% since it opened at N255 yesterday morning June 20, 2016.

The Naira also depreciated on the parallel market where it closed at N346/Dollar, down from about N330-335 its traded at on Friday.

The Central Bank of Nigeria, introduced new guidelines for the foreign exchange market with the implementation of a single structure through the interbank/autonomous window, essentially letting the market determine the price of currency.

ALSO READ: Currency still in limbo as float policy takes effect [UPDATE]

When trading began yesterday, there where various prices being quoted across the board for the Naira against the Dollar. Some experts had predicted this, highlighting the fact that the market would take some time to adjust to the new CBN policy and find a rhythm.

The change in the CBN forex direction came after 16 months of pegging the currency at N197-199/Dollar, despite several calls from stakeholders and international organizations for the devaluation of the Naira following a slump in oil prices since 2014.

Stay with Pulse Money to bring you the latest updates on the current exchange rates for the Naira and leave your thoughts in the comments section below.

folarin okunola