NOT GOOD: Naira Fals Heavily to 371 to the Dollar As Scarcity Persists

The continuing pressure on the naira rose sharply on Wednesday with the local currency tumbling to a new low of 371 against the US Dollar at the parallel market. It had closed at 361 per dollar on Tuesday.

The delay by the Central Bank of Nigeria in explaining how the proposed flexible exchange policy will work has increased speculation on the currency.

Foreign exchange dealers and investors said the delay had caused uncertainty in the foreign exchange market and fuelled hoarding of hard currencies.

According to foreign exchange dealers at black markets in Lagos, Abuja and major airports across the country, the dollar was sold for between 367 and 373 on Wednesday.

Findings from various operators revealed that the local currency went for 371 against the greenback in most of the parallel market locations.

Funny enough, the currency traded at 199.40 to the dollar on the official interbank market, within the CBN’s pegged rate band.

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