Naira Crashes To N1,390 Per Dollar After CBN Governor’s Forex Comment

The naira has crashed to N1,390 per dollar at the Bureau de Change segment of the foreign exchange market after the Governor of the Central Bank of Nigeria, Olayemi Cardoso, said that the currency was largely undervalued.

Checks by THE WHISTLER revealed that the naira lost 1.4 per cent of its value or an equivalent of N20 from N1,370 traded on Tuesday to N1,390 on Wednesday

The currency also plunged to N882.24 per dollar from N878.61 traded on Tuesday at the Nigerian Autonomous Foreign Exchange Market.

THE WHISTLER reported that Cardoso said at the launch of the Nigerian Economic Summit Group (NESG) macroeconomic outlook for 2024 that, “We believe that the naira is currently undervalued.”

The NESG in the outlook projected that the official exchange rate will hover around N900 per dollar in 2024.

The apex bank boss in his address to NESG said with coordinated measures on the fiscal side, the naira will regain its value.

Last year, the federal government said that the fair value of the naira was around N600 per dollar.

Cardoso said, “We will expedite genuine price discovery in the near term. This coordinated approach will contribute to a more balanced and stable exchange rate.

“Our collaboration with the Ministry of Finance and the NNPCL to ensure that all FX inflows are returned to the Central Bank. This coordinated effort will greatly enhance the Bank’s FX flows and contribute to the accretion of reserves.

“We are implementing a comprehensive strategy to improve liquidity in our FX markets in the short, medium, and long term. Our focus is on addressing fundamental issues that have hindered the effective operation of our markets over the years.”