Naira Crashes To 300 Against Dollar At Parallel Market

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Naira Crashes To 300 Against Dollar At Parallel Market

The Nigerian Naira on Tuesday hit an all time low against the dollar at the parallel market.


The currency exchanged for 300 against the United States dollar in Kano, 290 in Lagos and 292 in Abuja.


This follows the CBN’s decision to stop sale of dollar to Bureau de Change operators in the country.


“There is cut of (dollar) supply to the market.
The BDC sub-sector has been murdered. We are not coping. The naira is going to head
northwards. There is no solution in sight,”
Acting president of BDC operators in the country Aminu Gwadabe lamented.


According to Head of Investment Research, Afrinvest West Africa Limited, Mr. Ayodeji Ebo, the stoppage of forex sale to the BDCs meant that the CBN wanted everybody to apply to the banks for dollars.


“But we feel the pressure now will move from the BDCs to the parallel market. We will see significant spike in the value of the naira at the parallel market because the little supply to the BDCs have also helped to cushion the demand at the parallel market.


“It will further compound or increase the spread between the parallel market and the interbank market. So, it will also increase round-tripping and unethical practices within the financial system.”