Central Bank's banknote--printing plan triggers naira fair

The announcement of a plan by the Central Bank of Nigeria (CBN) to print new naira notes triggered a dramatic fall in the currency and a rapid rebound, prompting analysts to highlight a range of inflationary pressures in the economy. 1 Although the naira rebounded by the morning I of Friday 11 November to N740 against the dollar on the parallel market, the currency previously I fell to nearly 892 naira to $1 on 6 November, from the 752 naira that was offered at the widely-used street market popularly known as the Bureau de Change (BDC) shortly before the announcement. The Central Bank's existing regime of multiple exchange rates, a volatile crude oil market and Nigeria's inability to meet oil production targets are some of the other causes of dollar shortages. The government itself acknowledged the failures of the current exchange rate system in its Integrated National Financing Framework report released at the beginning of October in collaboration with the United Nations Development Programme (UNDP): "The multiple exchange rate system and limited access to foreign exchange is a significant obstacle for businesses to operate.