News
Naira Value Plunges As Currency Crashes Heavily Against Dollar
The Naira for second week consecutively has continued its decline as the currency continues to tank against the dollar.
The naira continued its expected crash on Thursday after it exchanged at N450 to dollar at the parallel market.
The naira plunge is partly engendered by the build up on dollar demand continued to rise.
The renewed plunge in value at the black market is due to rise in the dollar demand from foreign investors and importers with payment obligations accumulated amid hard currency shortages triggered by an oil price crash, traders said.
Aside devaluing the naira in March, the Central Bank of Nigeria (CBN) also adopted a unified exchange rate, and pushed the official rate of the naira to N376 to dollar for International Money Transfer Operators rate to banks; N377 to dollar for banks’ dollar sale to CBN and pegged CBN’s dollar sales to banks at N378.
The CBN also moved the official rate to N360 to the dollar from N307 per dollar previously and now selling dollar to foreign portfolio investors (FPI) at N380 at the Investors’ & Exporters FOREX window from N366 per dollar previously.
However, the move has failed to bolster the local currency which many experts fear could face second round of devaluation.
Meanwhile, the naira is seen steady on the official and over-the-counter spot markets, traders say, as bidders resist weakening the currency since the majority of dollar supply is from the CBN.
The bank resumed forex sales last week to help importers and individuals with dollar expenses abroad ramp up economic activity following a phased easing of the coronavirus lockdown.
Advertise or Publish a Story on EkoHot Blog:
Kindly contact us at [email protected]. Breaking stories should be sent to the above email and substantiated with pictorial evidence.
Citizen journalists will receive a token as data incentive.
Call or Whatsapp: 0803 561 7233, 0703 414 5611
