The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has blamed the United States and Nigeria’s over reliance on foreign goods for the unrelenting depreciation in the value of the naira against other major foreign currencies.
The under fire CBN gave this excuse during his closed door with leadership of the National Assembly where he was asked to explain why the naira was depreciating.
Emefiele was also said to have blamed other factors such as the declining commodity prices and the Geo-political tensions along important trading routes for the dwindling naira value.
Nairametrics, had sometime in December explained how the US fed rate hike affects emerging countries like Nigeria indicating that rate hikes means a stronger dollar against most of the worlds currencies and will trigger capital flight out of the country. Nevertheless, pointing the fingers at the US seem rather weak as the drop in the price of oil and its negative effects on our external reserves are seen as the major factor for the depreciation of the naira. In addition to that, several policies aimed at restricting forex transactions in the country are also responsible for the drop in the value of the naira.