Naira Crashes To N502 After CBN Devaluation
The Naira has crashed at the parallel market to N502 per dollar after the Central Bank of Nigeria adopted the Nigeria Autonomous Foreign Exchange ( NAFEX) rate.
The CBN had devalued the naira from N379 official rate to N410 close to the Investors’ & Exporter (NAFEX) Windows rate where investors and exporters trade.
Data from Aboki FX revealed that the impact has led to a fall in naira to N715 per pound from around N670 in early May.
The Euro has also surged to N610 from the N580 it traded in May.
Since the outbreak of the Covid-19 pandemic, the naira has been devalued four times including the recent devaluation in 2021.
The bank had devalued the naira from N305 per dollar to N360/ dollar and N379 per dollar.
Nigeria has suffered huge foreign exchange pressure arising from the fall in crude oil price in 2020 and the months-long lockdown.
The CBN said the country had a foreign exchange backlog of over $2bn with a lot of foreign portfolio investors trapped in the Nigerian economy.