Dec 16 (Lagos) - Naira hit a new all time low of 273 in the parallel markets against the USD today according to newspaper reports. The Naira hits a new low everyday so by the time we finish this article, chances are it has hit 275. We are also tired of reporting this same sad news everyday.
Crude Oil prices declined more than 4% today again in New York. Nigeria is an import based Country blessed with fertile land yet unable to even grow food to feed even a small proportion of her big population. All that is known that Nigeria is affected by low crude oil prices which are going to stay low for longer than anyone previously thought.
Today the CBN reduced the amount of Dollars it offered to Bureaux De Change and it expected that these bi-weekly sales will be stopped soon.
Because the CBN did not sell enough Dollars to BDC's, it created a scarcity of Dollars in the market. The buyers bought at whatever rate they could find and that most likely led to the sharp decline in the exchange rate.
The CBN has fixed the Naira exchange rate at 197 by fiat and it is trading at 199 in the inter-bank market.