With a gap of N284 between the official exchange rate and the parallel market rate, analysts at Cordros Research said the Central Bank of Nigeria(CBN) would not devalue the naira anytime soon, even as they warned that lack of flexibility in the foreign exchange market could lead to further misalignment in rates.
The naira, which closed at N461.67 to the dollar last week Friday at the Nigeria Autonomous Foreign Exchange market (NAFEX), also known and the Investors and Exporters window, has seen a depreciation in its value to N745 to the dollar on the streets.
Also, banks had stopped allowing their customers use their naira denominated cards to settle international transactions as foreign exchange scarcity hit.
This is as the governor of the Central Bank of Nigeria, Godwin Emefiele had late last year assured that it will continue to support the naira by intervening in the foreign exchange market.
