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| US Dollar and Nigeria Naira |
On monday the Nigerian currency had the value of 430 to the that of one us dollar,weighing more than it did for the past weeks when it was drastically dropping.the Nigeria central bank has also resume forex sales.
The central bank of Nigeria stopped the exchange of foreign currencies due to the corona virus pandemic,after four weeks of the suspension of forex sales the Central Bank resumes the provision of foreign currency to all including the commercial banks which it stopped from the operation some weeks ago.
The resumption of the provision of foreign currency was to enable parents wishing to pay their school fees and for local businesses in the country so as to prevent further deviation of the nations economy.
The president of the association of Bureau de change,Alhaji Aminu Gwadabe said in a statement that the partial lifting of the suspension on forex trade was made to help the economy.
According to his statement,he said;
"The partial lifting of the suspension of forex sales through the Cbn announcement on school fees and SME's imports funding through the Cbn window was what broke the camel's back and a drive towards flattening the curve in the forex market.
And led the Naira to gain over 3.5% strength over the dollars from an all high of 470/$ to Wednesday last week to 430/$ at the close of business.
"The noticeable frivolous demand that had pervaded the market during the period of lockdown had been upturned by the lifting of the suspension.
"It is imperative to know that the road to price discovery in the market will be achieved as soon as the Bureau de change resume operation to a more realistic rate of 405/$ in the month of May.
"We the BDC operators urge the Cbn to resume the sales of forex to the BDC for a better market price discovery and effective liquidity to continue to defend the value of naira and the infant industries".
The Naira has been under pressure in the previous weeks due to some facts including the fall of the price of crude oil in the world affecting Nigeria's economy because crude oil is the major product that is being exported to other countries,Nigeria's depleting reserve, and growing demands for dollar when the provision of dollar and other foreign currency was in halt.
These are the main occurrences that made the central bank of Nigeria to announce the resumption of dollar sales.
The Nigeria foreign reserves dropped to about USD33.44 billion as at 30th April 2020.
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