By Yemi Adepetun and Temiloluwa Adeoye
MANY are wondering what is happening to the Naira, which gained marginal value after the elections. The naira had gained about 23 Naira against the Dollar as it exchanged for N197, against N220 before the elections, making many to heave a sigh of relief. Thinking was that the Dollar would continue its free fall.
But the Naira is beginning to witness a downward slide in the value, as it now exchanges for N230. Efforts by the Central Bank of Nigeria (CBN) to shore up the Naira have not made a difference. In fact, the value continued to depreciate. The bank had adopted a lot of measures, including prohibition of demand and offer of Dollar for local purchases and services, closure of Retail Dutch Auction System (RDAS) for interbank foreign exchange market and recently, the removal of 41 items from the list of imported items that foreign currencies could be sought for importation.
The declining value of the Naira is taking its toll on every sector of the economy. Importers are lamenting low patronage and inability to import more and to clear some of their goods at the ports.
Olalekan Tosin is an importer of lace materials. She is the owner of Titilope fabrics on Lagos Island. According to her, she has not been able to travel to Switzerland to buy lace materials in the last six months because of the rising exchange rate and the inability to sell fabrics at the prevailing rate. Read More →