Falling Oil Prices Affects Nigeria Currency
The Central Bank of Nigeria (CBN) Governor, Mr. Godwin Emefiele has said he will continue to defend the naira after the currency plunged to a record low last week.
“There’s no need for anybody to panic or worry,” Emefiele told Bloomberg.
“The central bank has always intervened. We know our reserves can support nine months of imports, which is far above the minimum expected. We believe we’re very safe.” The Naira fell to an all-time low on November 7 after a drop in crude prices, prompting the central bank to intervene. In defending the currency rate, Nigeria has reportedly reduced its foreign reserves to a four-month low of $37.8 billion.
The naira weakened a third day, down 0.8 per cent to N169.80 per dollar on Wednesday.
The central bank has been selling dollars to banks outside its twice-weekly auctions since the naira’s drop on the morning of November 7, Deputy Governor of the CBN, Sarah Alade stated according to reports.
“We have been intervening in the market since Friday,” she said.