Crashing oil prices and the devaluation of the Naira by eight percent by the Central Bank finally caught up with the Naira as it slumped to a record law of N208 this morning on the streets of Lagos.
Brent crude fell to ten year lows of less than $50 per barrel with no hope in sight of price increase even as OPEC refuses to cut production quotas.
The falling price of crude oil on the global market has affected Nigeria’s foreign reserves which is solely based on the sale of crude oil.
The CBN on Wednesday stopped banks from selling to Bureau de change operators and speculators say this is one of the key reasons the Naira is reacting unfavorable to CBN’s policy.
It remains to be seen if the Naira would rebound in the coming days.