Up to $6.8 billion in past-due forward payments on the foreign exchange market, according to Nigeria’s Finance Minister Adebayo Olawale Edun, are to blame for the naira’s drop and must be resolved for the local currency to stabilize.
He allegedly said that if these unpaid contracts could be resolved, it would strengthen the naira and allow for more foreign exchange flows.
This follows news that the naira is breaking records against the dollar in the black market, disrupting the government’s economic goals.
The naira continued its dramatic decline on Thursday, dropping to a new low of 1,050 to the dollar on the black market, in reaction to concerns over postponing the Monetary Policy Committee meeting.
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