The naira was trading at 445.83 to the dollar at the Investors and Exporters window on Wednesday, down 0.01 percent from the previous day’s rate of 445.80.
On Wednesday, the open indicative rate was N444.25 to the dollar.
The highest rate reported throughout the day’s trade was N452 to the dollar before it finished at N445.83.
During the day’s trading, the naira sold for as low as 426 to the dollar, with a total of N127.78 million transacted in the official Investors and Exporters window.
Meanwhile, Hassan Oaikhenan, an economist at the University of Benin in Benin City, has ascribed the naira’s decline to surplus naira in circulation chasing the few dollars.
He urged the Central Bank of Nigeria to limit the supply of the naira using the currency redesign as an opportunity to take firm hold of the supply of the naira.
“The way to go therefore is that now that the denominations are redesigned, it is up to the CBN to as much as possible, limit, control, manage, tighten the quantity of the redesigned currency.
“Especially the higher denominations in circulation. They have to be properly managed so that at the end of the day, this phenomenon of too much naira chasing few dollars can be addressed.
“If that is sustainably done, then we will see an improvement of the exchange rate of the naira to the dollar,” he said.
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