CBN new policy fails to stabilize Naira, plunges to N480/$

Despite the Central Bank of Nigeria (CBN) relaxing its policy on foreign remittances and domiciliary accounts, the Naira plunged further to N480 compared to the United States Dollar on Monday December 7, 2020.

The currency which had closed at N475/$ on Friday, had earlier gained N20 and traded at N470/4 in the parallel market on Wednesday.following the CBN new policy on diaspora remittances.

The Apex bank said last week Monday that beneficiaries of diaspora remittances through the international monetary transfer operators (IMTO) shall now have such inflows in foreign currency (US Dollar) through the designated bank of their choice.

The Naira has been suffering intense depreciation and steady decline against the dollar at the black market in recent times due to dollar scarcity and speculative purchases.

Operators blame illegal activities by forex speculators for the sharp depreciation. Some traders also attribute the naira decline in value to increased demand due to speculation.

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