Naira crashes to N493/$1 at parallel market

According to reports, the Naira lost three points to the dollar as it closed at N493 to a dollar, against N490 it traded on Wednesday, January 4. Also, the Pound Sterling and the Euro exchanged for N595 and N506, respectively.

Naira crashes to N493/$1 at parallel market. At the Bureau De Change (BDC) window, the Naira traded at N399 to a dollar, the Central Bank of Nigeria (CBN) controlled rate, while Pound Sterling and the Euro closed at N598 and N510 respectively. The Naira, however, remained stable at the interbank window as it exchanged for N305.00 to a dollar.

However, traders at the market said that liquidity challenge was far from being resolved. On his part, Aminu Gwadabe, the president, Association of Bureau De Change Operators of Nigeria (ABCON), while decrying the spike in the exchange rate, commended the CBN for keeping it below N500 to a dollar. Gwadabe said the task of keeping the dollar below N500 and controlling the inflation rate was enormous. He added that the apex bank was doing its best.

But according to currency traders, the Naira is set to witness another round of decline against the dollar in the coming days ahead. This is because the expected increase in dollar flows from Nigerians living abroad coming home for holidays fell short of expectations. “We see the naira depreciating against the dollar by the time more businesses resume operations next week after the festive season as dollar liquidity remains thin in the market,” one currency dealer said.

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