The naira hit a record low of 325 to the dollar at the parallel market on Thursday as desperate importers scrambled for dollars to meet their obligations overseas.
The local currency had closed at 318 against the greenback on Wednesday, after hitting 313.5 and 310 on Tuesday and Monday, respectively.“The dollar is falling because importers need forex to bring in their goods. They cannot keep on folding their arms because there is scarcity; they must keep buying; the only thing is that the quantity may reduce,” a forex dealer told our correspondent under condition of anonymity.
The CBN has left the official exchange rate unchanged at N197 to the dollar on its official interbank window.
“We see the naira falling further in coming days if the central bank fails to lift the dollar restriction,” the Acting President, Association of Bureau De Change Operators, Aminu Gwadabe, said.Tumbling global oil prices have battered Nigeria’s oil-dependent economy, with external reserves down to an 11-year low at $27.89bn on February 9, Reuters reported.
President Muhammadu Buhari is concerned that further depreciation will hurt poor Nigerians, but the CBN’s refusal to revise the pegged exchange rate has widened a chasm between official rate and the parallel market.Last month, the central bank halted dollar sales to the BDC operators and allowed commercial banks to accept dollar deposits, in a failed effort to shore up dwindling foreign reserves.
Around 90 per cent of the nation’s foreign exchange earnings come from crude oil exports, but mismanagement of the refineries means the country must also import expensive refined fuel.The Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane, said it was high time the CBN came up with a forex policy that would address the forex crisis confronting the nation.
In an economic note released on Thursday, Rewane said, “Nigerians are perplexed at the endless slide of their currency, which is now trading at N325/$, the lowest point ever.“This is happening even when the oil price is up at $31pb. The debate as whether to devalue the naira is not the real issue. The discourse should be whether we need an exchange rate policy or not. The absence of a policy is a recipe for economic anarchy and a race to the bottom.”
Bobby Shmurda Finally Opens Up On Why He Took Some Time For Rowdy Rebel In Prison
“He deserves four more babies” – Simi says as Adekunle Gold treats her to a private beach party (Video)
‘They’ll be the first to run away when crisis starts’ Lai Mohammed asks Nigerians to shun secessionists (Details below)
After A Mad Woman Went Into Labour, See Throwback Photos Of The Cute Baby That She Gave Birth To (Photos below)
JUST IN: Nigerian Crop Members Might Start to Serve Abroad, See Reasons (Details below)
See The Top Nigerian Leaders Sponsoring Bandits And Killings In The Country, This Will Shock You (Details below)
JUST IN: You Can’t Become President Without River’s Votes – Wike (Details below)
All Nigerian Parents Must Take Note Of This Important Information by The Federal Government (Details below)
- News1 day ago
After Leaving Europe to Join Nigerian League, Ahmed Musa’s Salary at Kano Pillars Revealed (Details below)
- Crime1 day ago
Another Bloody Sunday in Nigeria, See The Number of People That Died Today (Details below)
- Celebrity Gossip & Gist1 day ago
Mixed Reactions As James Brown Is Stripped Naked By Angry Youths In Lagos (Video below)
- Love & Relationship1 day ago
Meet The Man Who Found Love While In Prison And Got Married There, See How It Happened (Photos below)