The naira value continued to plummet on the parallel market as speculators scooped up and hoarded dollars, while the local currency’s value maintained about ₦412 to the greenback at the Investors’ and Exporters’ window.
The value of the naira dropped by ₦12.2% in two days on the parallel market. The naira plummeted to ₦550 at the close of business on Monday, from N545 at the close of business last Saturday, and further depreciated to ₦557 at the close of business yesterday.
The naira declined to ₦412.75 at the I&E window after closing last week Friday at ₦412. The naira appreciated on Tuesday to close at ₦412.08 to the dollar. On Monday, volume at the window increased by 83.10 per cent to $161.82 million, compared to $88.39 million at the close of trade last week Friday.
The naira’s devaluation at the parallel window has widened further, rising to ₦145 from ₦85 when the Central Bank ceased providing foreign cash to bureau de change operators due to an increase in foreign exchange market speculation.
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At the same time, foreign reserves continued to grow, with the 30-day moving average standing at $34.859 billion on September 10, 2021, up from $34.1 billion at the start of the year.
Meanwhile, According to the Nigerian Central Bank, e-Naira will enhance the banking system and make it easier to comply with existing rules such as anti-money laundering, customer protection against fraud, and maintaining the payment system’s safety and stability.
Mr Folashodun Shonubi, Deputy Governor Operations of the Central Bank of Nigeria, stated this during the Chartered Institute of Bankers of Nigeria advocacy series webinar on Thursday.
When combined with active inter-developmental policies, Yuguda believes the digital currency will help strengthen the capital market, resulting in financial inclusion, particularly in the capital market.