Dec 11 (Lagos) - The Central Bank of Nigeria (CBN) ended foreign exchange (forex) market transactions for the week with USD 303.9 million as it earlier in the week sold USD 210 million to sustain liquidity.
CBN has started selling Dollars to protect the Naira on a more regular basis now that the crude oil prices have increased to a more comfortable level.
This was the same Policy the CBN used to follow during the past regimes.
This is not a sustainable Policy and definitely not long term. It is good as long as the crude oil prices remain high but the moment that changes, we will be back to facing a currency crisis.
However given the current crude oil prices, CBN should be looking towards bringing the Naira value lower as the parallel market rates are still above 360 to a Dollar.
There should be increased Dollar supply in December has visitors from abroad bring Dollars into the system.
reporting for easykobo.com on Monday, Dec 11 2017 from Lagos, Nigeria
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