×

VIDEO: Why Naira Is Falling – Rewane

Naira - Nigeria's currency - has fallen sharply against the dollar and others, exchanging for over N1,400 to the dollar in the parallel market. 


naira/dollar
A man exchanges Nigeria’s currency Naira for US dollars in Lagos, Nigeria (Photo by PIUS UTOMI EKPEI – AFP)

 

The CEO of Financial Derivatives Bismarck Rewane has explained the reasons for the fall of the country’s currency.

Naira – Nigeria’s currency – has dropped sharply against the dollar and others, exchanging for over N1,400 to the dollar in the parallel market.

But Rewane, a guest on Channels Television’s Politics Today on Monday, blamed the development on the low influx of forex among other factors.

READ ALSO: No Plans To Convert $30bn Domiciliary Deposits To Naira – CBN

“One is low supply – supply of dollars. When you have low dollars. Anytime the supply is short, the price increases,” he said, adding that there is also a “loss of confidence in the currency as a store of value”.

According to him, the restrictions and exchange rate controls are also part of the factors leading to the fall of the currency.

WATCH HIM BELOW: