The reason
is simple: The CBN (Central Bank of Nigeria) is pumping dollars into the
economy. Billions of dollars have been pumped in recent times and that is what
has kept price of dollar from going up. When supply is high, price should not
be expected to rise.
The CBN
has proven that they have deep pockets – they are intent on continuing to pump
dollars into the markets. This would help those who need it to get it at
cheaper prices.
However,
CBN doesn’t pump GBP or EUR into the economy, hence the rise in prices of Euro
and Pound.
Once CBN
stops pumping dollars into the economy, price of dollar would rise steeply.
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