Central Bank of Nigeria has devalued naira from N411 to N435 to a dollar at the official market, reaching all-time high on Friday.
The devaluation followed CBN’s adjustment of the official exchange rate on its website to N413.49 per dollar. The naira formerly exchanged at N411/$1.
Naira has been devalued several times in the recent past years and has further been influenced by CBN Governor Godwin Emefiele's adoption of the Importer & Exporter window (I&E) in May 2021. The I&E reduced the naira’s value from N379 to N411.
CBN spokesperson, Osita Nwasinobi, speaking to The Cable said, “If you see N413, then that’s what it is. The market determines the rate.”
FMDQ OTC Securities Exchange, a reliable platform that furnishes the public with forex data showed how the naira which opened at N420/$1 closed at N435/$1 on Friday, December 31, 2021.
Naira exchanged at N565/$1 on Friday at the parallel market gaining N5 from its previous exchange rate of 570/$1 before Christmas holiday. With the devaluation of naira at the official window, BDC's exchange rate is expected to hit N600/$1 in the coming days or weeks.
The naira’s value has continued to plummet to the dismay of business owners who rely heavily on FX to run their businesses.
CBN had shutdown Aboki FX and declared its owner wanted for FX speculation and manipulation that adversely affect the value of naira. But with this development it seems Aboki FX was never the cause of weakening naira.