Naira On Free Fall Against The Dollar, Pounds Sterling

Naira On Free Fall Against The Dollar, Pounds Sterling

By Agency Reports on September 23, 2016
Reuben Abati Naira Economy Central Bank, Nigeria, CBN
A trader changes dollars with naira at a currency exchange store in Lagos February 12, 2015. A trader changes U.S. dollars with Nigerian naira at a currency exchange store in Lagos, Nigeria, Feb. 12, 2015. | Reuters/Joe Penney

The Naira on Thursday, September 22, 2016 crashed further against the major currencies in all the segments of the market.

At the interbank market, the naira fell by 2.99 points to close at N313.07 from N310. 08 recorded on Wednesday.

At the Bureau De Change segment of the market, Nigeria’s currency traded at N424, N549 and N468 to the dollar, Pound Sterling and the Euro respectively.

Trading at the parallel market showed that the naira lost 8 points to close at N436, from N428 posted on Wednesday, September 21, 2016 while it traded at N555 and N472 against the Pound Sterling and the Euro respectively.

Traders at the market said that the scarcity of the greenback was still hunting the market.

Meanwhile, Alhaji Aminu Gwadabe, the president Association of Bureau De Change Operators of Nigeria said that he foresees the naira on the path of recovery by Monday.

Gwadabe, “The naira will begin to recover by Monday when Travelex begins to sell forex to BDCs.”

Gwadabe said that with the coming onboard of Travelex, a licensed forex dealer, efficiency, transparency and equitable distribution of forex would be restored in the market.

Since the implementation of the flexible exchange rate by the Central Bank of Nigeria, the gap between the official interbank rate and the parallel market continued to soar.

The naira, which had opened at N285 at the launch of the policy, had depreciated by 10 per cent while it continued to crash further at the parallel market. (NAN)


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