How much longer can the Central Bank of Nigeria (CBN) pump dollars into the Forex market for negligible results before the impact on foreign reserves becomes too negative to continue?
This is the key question facing the economy of the country currently.
At best the CBN is propping up the Naira against the economic fundamentals facing the country. It’s actions are certainly not bringing the value of the Naira towards N200 per USD.
With WTI crude oil prices low and going lower, this strategy looks unsustainable and is achieving little in terms of strengthening the Naira.