Naira set to weaken more due to shortage on dollar
. So many things have gone wrong where its not suposed to. Under GEJ, the exchange was basically at 220 naira to a dollar, but recently the rate has spiralled from that to about 375naira. It was of recent that it came down to 353 naira. And from foreign portfolio, read the latest below as the naira splunge to a weaker value
The naira is expected to continue to weaken this week on limited dollar supply as foreign portfolio investors stay on the sidelines until the Nigeria economy shows signs of recovering from the impact of currency controls, foreign exchange traders have said.
The naira had hit an all-time low of 334.50 per dollar on Wednesday, a day after the Central Bank of Nigeria hiked interest rates to try to lure foreign investors back into local assets, Reuters reported.
Forex traders said investors were pushing the naira lower to test the limit of how far it could fall, given a spread of almost 12 per cent between the official and black market dollar-naira exchange rates.