NAIRA SURPRISINGLY CRASHES AT BLACK MARKET DESPITE CBN’S SUPPLY OF DOLLARS 


Dollar to Naira

  • – The improving fortune of the Naira in the parallel market was on Monday, April 3, halted as it depreciated to N395 against the Dollar
  • – The Naira, which closed at N475 to the British Pound and N410 last week, now trades at N485 and N415 respectively
  • – ABCON chief Aminu Gwadabe blames the depreciation of Naira on the speculators’ onslaught and resistance by the banking industry
  • – The CBN has moved to salvage the situation of the Naira by easing foreign exchange policies

    The value of the Naira on Monday, April 3, crashed again at the parallel market, despite the continuous injection of Dollars at the official end of the foreign exchange market, by the Central Bank of Nigeria (CBN).

    According to reports, the Naira has crashed further to N395 to a Dollar as against the previous rate of N390.
    The local currency which also closed at N475 to the British Pound and N410 to the Euro on Friday, March 31, now trades at N480 and N415 respectively.
    However, the President, Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, has blamed the recent depreciation of Naira on the speculators’ onslaught and resistance by the banking industry.

    Gwadabe told newsmen on Saturday, April 1, in Lagos that the refusal of some banks to sell the invisibles such as personal and business travel allowances frustrated Naira recovery.
    The ABCON chief said that the CBN had recently accused the banks of frustrating its policies.
    He said it was ironical that the Naira started losing strength in spite of the CBN’s review of the rates from N375 to N360 to a dollar.
    The Central Bank of Nigeria (CBN) has moved to salvage the situation of the Naira by easing foreign exchange policies thus providing forex to cater for tuition, travel and medical expenses

    Since the announcement, the CBN has pumped more than $2 billion into the market to ensure convergence of all segments of the market.
    Last week, the apex bank announced that it had increased the foreign exchange amount to be sold to bureau de change operators to $10,000 per week from the initial $8,000.
    It also said that it would announce new rate for BDCs.

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