On Thursday, 20th August, 2014, the Nigerian Naira fell 1.2 percent to N176.30 – to a dollar, a record low for the ailing currency. This drop comes despite the Central Bank of Nigeria’s (CBN) effort to manage the situation. One of which was the move to raise dollar sales to $250 million.

This, however, did not affect the high demand for dollars from importers. The barring of importation of certain items was also implemented in order to preserve the external reserves. But, despite interventions, the value of the Naira remains outside the central bank’s ideal trading band.

ETM Analytics stated that the Organisation of Petroleum Exporting Countries (OPEC) may increase its key rate from 12 percent next week to support the currency. “Expectations are rising that the bank will throw in the towel and hike policy rates given the seeming futility of trying to keep the naira from depreciating,” a Johannesburg-based Africa analyst at ETM, Gareth Brickman said.

According to the Head of Research, Sterling Capital, Mr. Sewa Wusu, the entire Naira crisis can be attributed to the falling oil prices. It can be traced to the activities of investors who were reacting to the potential danger should the oil crisis linger on.

Industry analysts are however optimistic that the Naira will close the year moderately at about N170 at the interbank market.