Nigerian Currency Plunges to All-Time Low Versus Dollar, Central Bank Revokes Licenses of 2,700 Currency Exchanges

The speech complaint of the Nigerian currency versus the greenback precocious plunged to an all-time debased of NGN860:USD1. The naira’s depreciation has been attributed to shortages of overseas speech connected the authoritative marketplace and the rising request for forex. The Central Bank of Nigeria (CBN) said it has revoked the licenses of astir 2,700 bureaux de alteration (currency exchanges).

Widening Gap Between Official and Parallel Market Exchange Rates

On July 20, the Nigerian currency reportedly deed a caller debased of NGN860 per dollar connected the parallel market. The currency’s autumn widened the spread betwixt the alleged import and export weighted mean rate (NGN773:USD1) and the complaint offered by achromatic marketplace dealers.

According to a Reuters report, the currency’s plunge followed the Central Bank of Nigeria (CBN)’s determination to interval the naira, which was made soon aft Bola Ahmed Tinubu’s inauguration arsenic the Nigerian president. The study added that the naira’s depreciation came a week earlier the CBN monetary argumentation committee’s adjacent meeting.

Nearly 2,700 Currency Exchanges’ Licenses Revoked

As reported by Bitcoin.com News, the CBN initially devalued the naira by 30% earlier allowing the currency to gradually depreciate against the greenback and different large currencies. Some Nigerian economical experts suggested that the cardinal bank’s eventual extremity is the unification of the parallel and authoritative speech rates.

However, the shortage of dollars successful the ceremonial marketplace coupled with the rising request for forex has accrued unit connected the naira.

Meanwhile, successful an effort to halt the currency’s slide, the CBN reportedly announced connected July 20 that it had revoked the licenses of 2,698 bureaux de change. According to a section report, the determination to retreat the licenses is portion of measures adopted by the cardinal slope which question to curtail oregon bounds the currency exchanges’ power connected the naira-to-dollar speech rate.

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