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A Bureau De Change source in Katsina said , the naira has remained at N347/$1 as it was on Tuesday, May 31.
He said: “It’s the start of a new month but the naira has not made any serious gain against the dollar. Our currency still trades for N347 to a dollar in the black market. Most shops still don’t have dollar to sell because there is high demand for it.”
The Nigerian currency had started last week on a convincing note at N340/$1.
It strengthened further against the greenback on Tuesday, May 24, before crashing on Wednesday, May 25 to N342/$1 and N345/$1 subsequently on Thursday, Friday. It started the new week at N347/$1 and has remained the same.
Meanwhile, the CBN is ready to roll out details of the new flexible exchange rate policy, which is a monetary system that allows the exchange rate to be determined by supply and demand; the nation’s currency naira is still pegged at the official exchange rate regime of N197/dollar, despite the currency switching to N285 to a dollar at the interbank market.
However, the implication of the flexible exchange rate policy is that with a high demand for the dollar in Nigeria, there is every likelihood that the naira will experience a further decline in the coming months.