The
naira witnessed a record low on Thursday. The naira fell 5.9 percent to 347.35
against the dollar by 1:14 p.m. in Lagos, the commercial capital.
Nigeria’s currency has slumped 37 percent since the central bank ended a 16-month peg of 197-199 per dollar on June 20. The capital controls needed to defend the fix, sending foreign investors fleeing and took the West African country to the brink of recession.
Nigeria’s currency has slumped 37 percent since the central bank ended a 16-month peg of 197-199 per dollar on June 20. The capital controls needed to defend the fix, sending foreign investors fleeing and took the West African country to the brink of recession.
This
brings to fore a dearth of dollars in Africa’s second-largest oil producer.
According to Craig Thompson of Continental Capital Partners SA, there is still
a huge demand of dollars in the country just as the central bank has been doing
their best to keep the exchange rate closing around 310.
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