This Chart showing Current account position explains why the Naira is trading weaker than the US dollars.
The Current Account position show the net of imports and exports, its now trending negative meaning export value are depressed or Nigerian import value have increased or both.
Currently we import more than we export, this means the demand for United States Dollars (USD) is higher than the supply of USD, clearly this means the USD price will go up…Unless we fix imports and exports, we cant fix the exchange rate, the exchange rate is a function of the import and export dynamics.
The CBN in 2015 had indicated that Nigeria monthly import bill was $4.5b, keep in mind the Current Foreign Exchange Reserves are about $29b….this add significant pressure on the USD as well.
We need to take a strategic view, boost exports, and attempt import substitution.
(Photo Credit: Trading Economics)