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Naira, Dollar

There is no respite yet for the nation’s currency as the naira recorded the biggest fall in recent times exchanging for N1,105 at the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Central Bank of Nigeria (CBN) approved official market.

The currency depreciated by over N200 within hours after it opened earlier in the day at N830. However, the fall would not last as the currency bounced back, closing at 841.14 yesterday.

According to Reuters, the sharp depreciation of the currency yesterday brought “The official exchange rate within touching distance of the parallel market rate.”

At the parallel market, the dollars opened at N1,135 and closed at N1,150 to N1,200.

One of the Bureau De Change (BDC) operators at a popular market in Lagos, Alhaji Hassan Sabo said, “Today we are buying at N1,100 and selling at N1,150.”

Asked on the prospect of the rate dropping, he said, “It cannot come down like that because the dollar is not available, some are not even selling at the rates I just gave you. It might even go up tomorrow.”

A capital market analyst, Samuel Showunmi said the government should return to multiple exchange rates to push the dollars into the market through the BDC.

“What we are seeing now with the banks is currency racketeering within the banking sector as well,” he said.

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