Naira fell significantly against the dollar at the official market on Wednesday as it exchanged for N415.10 to $1, the lowest rate ever recorded in recent times.

This implies a N0.80 or 0.20 per cent devaluation from N414.30 per $1 rate it exchanged on Tuesday.

The black market rate appears to be dropping as well. The naira exchanged for N570 to $1, five naira lesser than the previous day.

The drop comes barely two days after Vice President Yemi Osinbajo urged the Central Bank of Nigeria (CBN) to have a “rethink” of its foreign exchange management policy.

The Vice President sparked a forex conversation when he said Nigeria was operating an artificially low foreign exchange.

Speaking at Day 1 of the Mid-Term Ministerial Performance Review Retreat in the State House, Abuja, Prof Osinbajo said, “As for the exchange rate, I think we need to move our rates to [be] as reflective of the market as possible. This, in my own respective view, is the only way to improve supply.”

“We can’t get new dollars into the system, where the exchange rate is artificially low. And everyone knows by how much our reserves can grow. I’m convinced that the demand management strategy currently being adopted by the CBN needs a rethink, and that is just my view.

“Anyway, all those are issues that when the CBN governor has time to address, he will be able to address in full.”

He lamented the lack of access to forex for the importation of systems and raw materials as one of the contributory factors of the current economic situation, and said the CBN appeared to be in competition with government ministries and agencies in implementing certain policies.


The vice president on Tuesday responded to the criticisms, saying his call was not for the devaluation of the currency.

A statement by Laolu Akande, the VP’s spokesperson said, “For context, the Vice President’s point was that currently the Naira exchange rate benefits only those who are able to obtain the dollar at N410, some of who simply turn round and sell to the parallel market at N570.

“It is stopping this huge arbitrage of over N160 per dollar that the Vice President was talking about. Such a massive difference discourages doing proper business, when selling the dollar can bring in 40% profit!

“This was why the Vice President called for measures that would increase the supply of foreign exchange in the market rather than simply managing demand, which opens up irresistible opportunities for arbitrage and corruption.

“It is a well known fact that foreign investors and exporters have been complaining that they could not bring foreign exchange in at N410 and then have to purchase foreign exchange in the parallel market at N570 to meet their various needs on account of unavailability of foreign exchange.

“Only a more market reflective exchange rate would ameliorate this. With an increase in the supply of dollars the rates will drop and the value of the Naira will improve.

He added that, “The real issue confronting the economy on this matter is how to improve the supply of foreign exchange, but this will not happen if we do not allow mechanisms like the Importers and Exporters window to work.

“If we allow this market mechanism to work as intended, we will find that the Naira will appreciate against the dollar as we restore confidence in the system.

Within the past weeks, the exchange rate of the domestic currency and the dollar hovered around the range of N412.00 to N414.00 and above benchmark before clinching a new low of N415.10 on Wednesday.

Naira’s performance on Wednesday became significant as foreign exchange supply skyrocketed by 99.99 per cent with $306.77 million recorded as against the $153.39 million posted in the previous session on Tuesday.

The currency oscillated to an intraday high of N405.00 and to a low of N419.00 before closing at N415.10 per $1 at the close of business on Wednesday.

At the black market in Abuja and Uyo, dealers exchanged the naira within the range N568.00 and N570.00 to a dollar on Wednesday.

https://www.chronicle.ng/2021/10/naira-at-record-low-after-osinbajo-cbn/

Just like he also said about increasing our exportation, ones that would meet international standard, this will ensure stronger economy and in turn strengthen our currency.

They should work on making the Naira strong again oo.

Current Exchaging rate wan kill person

To buy Piggyvest dollar is 570 to naira since last 3 days

I believe a review of activities should influence certain decisions of the CBN governor. The exchange rate is affecting prices of commodities which also shows local production isn't at optimum.

The vice president knows what right but Tinubu will do what right.
BAT 2023

Osinbajo is calling for realistic exchange rate and not naira devaluation

It's still high, why would someone pay about N500 range to buy a dollar

Are they trying to distance the VP from the Govt... "Naira on record low"... who made it get to that level in the first place?... TheRareGem1, if you want to say the president is stupid but the VP is not, come out with your full chest and say it..

- 414.80 from 415 is a huge benchmark.. seriously??
- 570 from 570 is a huge benchmark... what's the difference?.

Failures will always celebrate failure.

In 2014, naira was 140/$. Bubu and osinbanjo came with campaign promises to make 1naira =1 dollar.

Now it 415/$ nd they are celebrating. I bet it's easier said than done.

You can't add value to naira when u keep looting, borrowing, printing and then re-looting money.
You definitely can't add value to it by keeping the southern borders shut, making stringent policies for business owners and making importation and exportation difficult with excessive charges. Kole work.
Shameless bunch.

AntiBMC:
Failures will always celebrate failure.

In 2014, naira was 140/$. Bubu and osinbanjo came with campaign promises to make 1naira =1 dollar.

Now it 415/$ nd they are celebrating. I bet it's easier said than done.

You can't add value to naira when u keep looting, borrowing, printing and then re-looting money.
You definitely can't add value to it by keeping the southern borders shut, making stringent policies for business owners and making importation and exportation difficult with excessive charges. Kole work.
Shameless bunch.

We easily get swayed by rethoric in this country. When did they ever said that?

TheRareGem1:


We easily get swayed by rethoric in this country. When did they ever said that?

before Jonathan came, what was the exchange rate, high or low ? in every administration, the exchange rate keeps maintaining upward trend ok. So stop making reference to 2014. ask yourself what was exchange rate by 1983.

TheRareGem1:


We easily get swayed by rethoric in this country. When did they ever said that?

Buhari and osinbajo kick against gej when naira was 216 to a dollar at black market rate.
Official rate was 187 differnce of 29.
But noe we r having difference of a whooping 160...
So much for failures who campaigned for change.

TheRareGem1:


We easily get swayed by rethoric in this country. When did they ever said that?

Whether they said that or not does not change the obvious facts I stated there.

una need to realy decide which rate una want....cbn rate or black market rate....
i dont think both ways is a good idea....