Everyday:

Cbn restricts this or that in IE window.
Cbn maintains mpr rate
Cbn does this or that to this or that window

Yet $1 = 500 roughly.

Is cbn really competent?

BigBashiru:
Everyday:

Cbn restricts this or that in IE window.
Cbn maintains mpr rate
Cbn does this or that to this or that window

Yet $1 = 500 roughly.

Is cbn really competent?

The main reason why the Naira continues to suffer depreciation is because Nigerian is an import dependent country...we prefer to import everything because we believe they are superior to local substitute.

We are spending more dollars than we earn mainly because the price of oil which is our main source of forex has fallen drastically due to improvements is other energy sources apart from fossil fuel.

It is not the CBN's fault that the Naira continues to depreciate.

The CBN carries out intervention to try and reduce the gaps between the exchange rates between the I and E window, the parallel market etc so as to reduce opportunity for arbitrage which gives rise to round tripping!

KEY FOREX WINDOWS CENTRAL BANK OPERATES.

The central bank operates three key forex windows and they have special rates the Dollar is exchanged for the Naira.

The first is the official exchange rate segment called the interbank. This is where government Dollar transactions are priced.

The second is the Investors and Exporters (I&E) window and it is for those who bring in items into the country.

while the third is the Bureaux De Change (BDC) segment, which caters for foreign travels, medicals, school fees, amongst others.

Those who do not qualify or are unable to source for forex at these regulated windows usual approach the unregulated market segment fondly called the black market or the parallel market.