Exchange rate depreciates by 54.82 in 8 months – Businessday

By HOPE MOSES-ASHIKE

Exchange rate at the interbank market depreciated by 54.82 percent in the first eight months of the year while the margin between the BDC and the interbank markets equally widened considerably on the backlash of mounting demand pressure in the FX market according to the Central Bank of Nigeria (CBN).

In his personal statement at the September monetary policy committee meeting, Adelabu Adebayo, deputy governor, operations directorate, said an assessment of the dynamics of FX flows in the first eight months of the year reveals a steady net outflow except in the months of February and May.

It should be expected that the impact of upward adjustment in petroleum prices and energy tariffs may wane soonest which, invariably, implies that the major challenge to inflation over the medium term is the instability of the exchange rate. As such, a prominent consideration for decision at this meeting is the need to stabilize the exchange rate.