Untold story behind dollar fall

Untold story behind dollar fall

Untold story behind dollar fall

 Reports have filtered in of the events that led to the successful table-turning on the fortunes of the naira against the dollar.

Speculations have been rife that the dollar would sell at N600 to the dollar,  but in a swift intervention by the Federal government, the naira could boast of N400 to N460 against the dollar as at Friday.

It was reported that the riot act had been read to CBN governor, Godwin Emiefele, who was asked to do something fast about the dwindling fortunes of the Nigerian currency.

In a swift reaction, some new forex policies were introduced.  The statement read:

“In continuation of efforts to increase the availability of foreign exchange in order to ease the difficulties encountered by Nigerians in obtaining funds for foreign exchange transactions, the Central Bank of Nigeria (CBN) is providing direct additional funding to banks to meet the needs of Nigerians for personal and business travel, medical needs and school fees, effective immediately.

“The CBN expects such retail transactions to be settled at a rate not exceeding 20 percent above the interbank market rate,” as signed by the apex bank’s Director of corporate communications, Isaac Okorafor.

“In order to further ease the burden of travellers and ensure that transactions are settled at much more competitive exchange rates, the CBN hereby directs all banks to open FX retail outlets at major airports as soon as logistics permit”, the apex bank ordered.

“The Bank reiterates that it would neither tolerate unscrupulous actions nor hesitate to bring serious sanctions on offenders, be they banks or their staff”, the statement read.

The Naira may well trade for N300 to the dollar before mid March, if prevailing favourable conditions persist.