Naira downward slide continues , now N159 to $1
From ISAAC ANUMIHE, Abuja
Wednesday, February 18, 2009

For two months, the naira has continued to dwindle to the effect that it has lost 20 per cent of its value against the dollar thus falling to N159 to the dollar on the black market, its lowest level in several years.



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According to agency report, the naira's decline has been brought about by falling world oil prices, which are eating into foreign earnings in Africa's top oil producer and clouding its economic outlook.


CBN Governor, Professor Chukwuma Soludo, has said the currency controls could remain in place for weeks or months and that they are meant to help sub-Saharan Africa's second-biggest economy cope better with the global financial crisis.


The apex bank at its bi-weekly forex auction sold $206 million at 145.90 to the dollar but failed to meet demand, forcing the local currency lower on the parallel black market.

However, the amount sold by the apex bank was short of the $385 million demanded at the auction. At its previous auction last Wednesday, the regulator also failed to meet demand, selling $326 million at N145.50 to the dollar.


The Central Bank has forbidden commercial banks from reselling forex bought at its auction or any other sources on the interbank market, making the black market the only alternative source for U.S. dollars.

CBN, during the last MPC meeting, had decided to directly control the exchange rate within a band of plus or minus three per cent which makes the CBN buying and selling rate to be one per cent, while that of the banks’ and Bureau De Change will not be more than one per cent and two per cent respectively.

woohoo!!!

Trouble for Nija big time, a Nation that manufactures nothing, a consuming market, where salary hasnt gone up, dead body don get accident oh.

woohoo!!!

Kobo why now

asha 80:

Kobo why now

Why not?? My $1 = Naira 159 and you thnk I should not rejoice? Imagine how much extra meat that $1 go buy me for bucka? Abeg!!! Make I rejoice oo, roflmao!!

like the price of anything in that buka go remain the same.

I just wonder when this madness will stop, or at least stabilize.

asha 80:

like the price of anything in that buka go remain the same.

We go see now. With bukas in every corner of the city, to stay competitive, they have to maintain low price and that is a WOOHOO for me.

This is no good news for me and other international biz men.