Naira suffers big blow against dollar as Buhari fumes, checkout new rate
Just as President Muhammadu Buhari was berating the Central Bank of Nigeria over the new flexible exchange policy, the nation’s currency was having a torrid time against the dollar at parallel market.
This follows a report from our Bureau De Change source in Lagos that the naira has plummeted to N342 against the dollar at the parallel market, today, June 28.
READ ALSO: Naira falls in black market amid CBN’s new policy
“The CBN policy has reduced the circulation of the dollar. Many of our guys will struggle this period as we don’t have dollar to sell.
“With CBN’s new policy, the numbers that run to us for forex has reduced as they would rather go to the banks now that it’s a lot easier for them to get the dollar, and at a very cheap rate,” a BDC source told NAIJ.com.
READ ALSO: Naira trades at N340/$1 in black market
According to Alhaji Aminu Gwadabe, the president of the Association of Bureau De Change Operators of Nigeria, the naira crashed at the parallel market due to persistent liquidity issue.
He said: “Lack of liquidity in both the interbank and parallel markets is what is affecting the naira exchange rate to the dollar.
“Right now, the only thing that the market is scavenging for is the export proceeds. There is a liquidity crisis.”
Gwadabe however denied reports that the demand have shifted away from the parallel market following CBN’s floating of the interbank market.
“How can demand shift away from the parallel market when you have about 41 items that cannot obtain forex from the official market? You cannot completely kill the black market, you can only formalise it,” he said.
The currency also depreciated at the interbank market, exchanging at 282 to the greenback.
Nigeria had pegged the naira to the dollar at 197-199 since March 2015, before being faced with a myriad of problems which include attacks on oil installations, an unprecedented scale in the prices of commodities, fuel scarcity amongst many others.
The numerous problems have seen the nation being hit with the worst economic situation in its history.
You can check out NAIJ.com’s bureau de change ‘market’ here for the best rates on foreign exchange.
The post Naira suffers big blow against dollar as Buhari fumes, checkout new rate appeared first on Nigeria News today & Breaking news | Nigerian newspapers.