There are indications that the dollar and other foreign currencies are heading for a crash against the naira as demand for foreign exchange by authorized dealers has slumped.
The AUTHORITY learnt yesterday that the dealers were only able to pick $45 million out of the $100 million offered by the CBN on wholesale spot on Wednesday.
Industry experts have attributed the slump in demand to the rate of forex liquidity being pumped into the system by the CBN, noting that it is only a matter of time before the dollar begins another round of crash.
The experts also attributed the new trend to the general cash crunch in the financial system.
The dollar has also crashed against major currencies since US President Donald Trump’s surprising declaration that China is not manipulating the value of the yuan.
The Acting Director of Corporate Communications at the CBN, Mr. Isaac Okorafor, in a chat with newsmen said the major injections made by the Bank in the course of the week were aimed at providing access to all stakeholders with legitimate need for forex.
“The CBN remains upbeat that the forex market will remain liquid and that Nigerians who genuinely require the forex will get ample access to the currency,” Okorafor said.
It will be recalled that the CBN made special interventions in the Bureau de Change Segment of the forex market and capped it up with the opening of a new window for Small and Medium Enterprises (SMEs).
These special interventions are in addition to over $500 million dollars offered to dealers in the wholesale and retail segments in the past week.