Naira weakens despite CBN’s Naira4Dollar Scheme

Despite the ‘CBN Naira 4 Dollar Scheme’, the Nigerian currency weakened against the United States dollar at the Bureau De Change by 0.42 per cent to close at N477/$1 in the second week of March.

The Central Bank of Nigeria had recently introduced the scheme to enlarge the scope and scale of foreign exchange inflows into the country in a view to stabilising the exchange rate.

At the parallel (black) market, the naira fell by 1.04 per cent to close at N485.00/$1 this week.

The naira weakened against the greenback at the Investors’ and Exporters’ window by 0.24 per cent to close at N410.00/$1 amid sustained rise in crude oil prices.

While at the Interbank Foreign Exchange market, it closed flat at N380.69/$1 amid weekly injections of $210m by the CBN into the forex market.

According to a report by analysts at Cowry Asset Management, the naira/dollar exchange rate appreciated for all of the foreign exchange forward contracts.

The analysts said, “In the new week, we expect naira/dollar to stabilise at most FX windows as crude oil prices sustain the bullish momentum.

“However, we feel that the CBN’s Naira 4 Dollar Scheme appears to be another form of naira depreciation which may have sent wrong signal to the forex market.”

Ehime Alex
Ehime Alex
Ehime Alex reports the Capital Market, Energy, and ICT. He is a skilled webmaster and digital media enthusiast.

Get in Touch


Please enter your comment!
Please enter your name here

Related Articles