Naira Plummets to Record Low as CBN, Finance Minister Bicker Over Naira's Redesign
- The naira fell to a record low of N780 on Friday and Saturday after the CBN unveiled plans to redesign the banknotes
- On the official market, the naira exchanged for N442.62 to the dollar before marginally regaining its strength
- The fall of the naira came as CBN announced its plans to redesign some denominations
The Nigerian currency plummeted to a record low against the dollar on Friday, October 28, 2022, two days after the Central Bank of Nigeria announced plans to redesign naira notes.
Bloomberg reports that the naira fell on the official market to a record N442.62 to the dollar before it regained some ground. In the parallel market, also known as the black market, the naira exchanged N780 to the dollar from N787.9 to the crypto USDT as of 3:41 p.m local time.
Source: Getty Images
CBN plans to redesign notes
The CBN announced on Wednesday, October 26, 2022, that it plans to redesign the N200, N500 and N1,000 notes by December 15.
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According to the CBN, the move will curtail Nigeria's currency hoarding, security, counterfeiting, and inflation.
Finance minister, CBN differ over plans
In response to the apex bank's plans, the Minister of Finance, Budget and National Planning, Zainab Ahmed, said the bank does not have the nod of the federal government to redesign the naira.
During a budget defence at the Senate, the minister said the plan would worsen things in the economy.
But the Central Bank swiftly countered the minister, saying it has legal backing as the Act empowering the bank allows it to redesign the notes periodically.
During the announcement, the governor of the Central Bank, Gowin Emefiele, said President Muhammadu Buhari agreed to the plans.
Exchange rate goes gaga in the black market, confuses traders
Legit.ng reported that Parallel market operators in Nigeria are in confusion as the Naira has continued to depreciate against the US dollar.
The fall of Nigeria’s currency, the Naira, has increased uncertainty among traders as they find it hard to determine the actual exchange rate.
Exchange rate confusion in Nigeria’s black market, where the Naira is trading without official and government regulation, usually creates opportunities for some and creating losses for those without knowledge of the optimum price.
Source: Legit.ng
