by Godwin Akanfe
The naira has experienced its highest fall in 5 years.
The Nigerian currency fell by four percent against the dollar to 187.05 at the interbank foreign exchange market on Wednesday, December 17.
According to foreign exchange market dealers, the fall is caused by the Central Bank of Nigeria’s announcement that its Wednesday’s auction at the Retail Dutch Auction System window was the last for the year.
After the announcement, traders and importers, who could not access the RDAS window, rushed to the interbank forex market to place their demand.
This reportedly led to a huge demand for the greenback at the interbank market, forcing the interbank rate to close at 187.05, down from 180.50 on Tuesday.
The CBN has stated that the official window of the foreign-exchange auctions would reopen on January 5, 2015..