Naira Sees 10% Depreciation – Import Bias to Blame, Says Central Bank of Nigeria

In the last one year alone, the Naira has experienced a 10% depreciation with inflation expected to average around 15% in 2022.

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According to recent reports in Nigeria, the Central Bank of Nigeria (CBN) is blaming Nigerian economy’s import bias for the continuous fall of the Naira.

Speaking at a 2-day expo organized by CBN, Osita Nwanisiobi, Director of Corporate Communications, CBN, said:

“No successful economy thrives on the promotion of imported products over the exportation of locally-manufactured products.”

– Director of Corporate Communications, CBN

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Nwanisiobi urged Nigerians to adopt homemade products in order to boost the economy and stop the Naira from depreciating further in the parallel market.

10% Naira Depreciation

In the last one year alone, the Naira has experienced a 10% depreciation with inflation expected to average around 15% in 2022.

In an interview with a local publication, senior banking industry players have warned that the Naira will continue to lose its value against the green buck if policies do not arrest the situation.

According to Muyiwa Oni, Regional Head of Equity Research, Standard Bank Group, West Africa:

“We predict that the currency on the official market will be around N440 per dollar from around N416 or N417 that it is. Our view is that as long as we don’t see formal reforms in the foreign exchange market, the shortage we continue to see will persist.”

– Regional Head of Equity Research, Standard Bank Group, West Africa

In September 2021, CBN accused forex traders like Aboki FX for ‘illegal forex trading.’

In particular, the bank blamed AbokiFX, a platform which lists foreign currency prices in the black market ,for manipulating the market, alleging that the service’s proprietor was engaged in selling foreign currencies, and thus was using abokiFX to benefit his other businesses.

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