The value of the naira plunged further against the dollar to exchange at 465/$ on the parallel market on Monday, after it exchanged at 460/$ on Thursday. 

Recall that it had earlier exchange at 430/$ when the CBN commenced forex sales to the BDCs earlier in September. However, the Central Bank of Nigeria has attributed the fall to declining export receipts from oil and speculative activities of the Bureau De Change operators. 

The Central Bank of Nigeria said this in its report on ‘Monetary, credit, foreign trade and exchange policy guidelines for fiscal years 2020/2021’. In addition, the bank said increased risk aversion behaviour by investors may negatively impact on capital inflow as they flee to safe-haven assets. 

Also, it projected that the fiscal space may be limited in 2020, given escalated vulnerability, as a result of sharp decline in oil prices, occasioned by weak global oil demand and price wars between Russia and Saudi Arabia.