Lagos - The already battered naira is set for a prolonged free fall, courtesy of the Central bank of Nigeria, which says it would no longer rely excessively on external reserves to support the exchange rate.
The bank’s decision to no longer sustain its support of the exchange rate follows the continuous fall in the country’s revenue from oil and low accretion to external reserves, reports Leadership.
The bank’s interventions have always lifted the naira against the dollar and other major currencies at various foreign exchange markets in the country.
A falling naira makes imports costlier and will push up input and lending costs.
Read more at Leadership.