Naira falls to all-time low of N202 to the dollar

profile of the nation’s currency may have hit an all-time low of N202 per dollar at the Inter-bank market, despite regulatory interventions.
  The development, which has exceeded the upper band limit of the Central Bank of Nigeria (CBN) pegged at N176 per dollar during the devaluation of the legal tender few weeks ago, may have as well raised concerns over the direction of the economy.
  Already, there are palpable fears that the trend might spark off inflationary pressure, with further devaluation of the currency in the offing.
  But an expert, who pleaded anonymity, said: “The apex bank may have already decided to protect the foreign exchange reserves by pushing through another round of devaluation as interventions continue to falter. Already, the reserves, which ended the year at $34.5 billion, is currently at $33.5 billion.”
  Specifically, naira’s unfavourable bargain in the exchange relationship, had on Tuesday, reached N200 for a greenback, but fell further Wednesday by N2.
  On Monday, the currency had also fallen to N196 against to the dollar, as the beginning of the announcement effects of the postponement of the general elections earlier billed for February 14.
  The delay, according to analysts, stoke panic among investors, leading to increased demand for dollar as investors move their funds to dollars and possible flight for safety.
  According to a report, local investors and businessmen, who had obligations in dollars, started stockpiling the United States currency for fears that the current trend might force the Central Bank of Nigeria to devalue the currency very soon.
  Yesterday marked the eighth day in a row and the longest losing streak, as the pressure started with last year’s oil price collapse, but compounded by the announcement of a six-week elections postponement.
 The dealers, for the first time, deployed the “circuit-breaker”, agreed among themselves last month, to suspend electronic trading after it dropped by more than two percent.
  Yesterday’s loss marked a 10 percent tumble since end-December and was 20 percent weaker than the central bank’s target rate of 168, despite regular intervention to sell dollars and other hard cash.
As interbank lending and liquidity have dried up, overnight interest rates spiked to records as high as 100 percent on Tuesday, with market pricing suggesting there is more weakness ahead.