and parallel market rates, which some analysts said remains the sole basis and driver for currency speculations. The CBN is losing buffer to protect
and parallel market rates, which some analysts said remains the sole basis and driver for currency speculations. The CBN is losing buffer to protect the naira with dwindling gross external reserves which printed at $36 billion despite a relatively healthy price of crude oil.
“What the 50% BTA/PTA slash means is that CBN is unwilling to fund foreign transactions in the short to mid-term. Nigerians with an eligible demand for the US dollar will have to buy at the open market”.
The future of the naira remains bleak and uncertain and the next devaluation will be sharp and loud, MarketForces Africa gathered. There is currently no upside potential for the local currency pairing against other stable currencies across the FX market due to a lack of comparative country advantages.
Nigeria is battling to surmount a weak economic structure. Even, income from hydrocarbon sales has not been optimised on account of low investment in the nation’s oil infrastructure – thus limiting FX accretion into external reserves.
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