Naira resumes fall as CBN leaves investors in wait-and-see mode

The Nigerian currency has resumed its decline against the dollar and other major currencies on the parallel market as investors continue to await policy statements and actions from the Temi Cardoso-led Central Bank of Nigeria.

The naira fell to another record low of 1,010 per dollar Tuesday on the unofficial market from 1,008/$ on Monday. That followed several days of appreciation against the greenback last week, with the naira closing at 1,000/$ on Friday. 

At the official market, the naira closed at 764.03/$ on Monday, according to the central bank.

Cardoso, who was confirmed by the Senate more than two weeks ago as the new CBN head following his appointment on Sept. 15, has yet to disclose what would be done to clear the foreign exchange backlog that is dampening investor confidence in the economy.

“Capital reallocation from Nigeria’s economy may continue to impact foreign investment flows in the short to medium term. Investors may adopt a wait and see approach due to lack of forward guidance on Foreign Exchange policy,” PwC Nigeria said in a report last week.