The free fall of the Naira against the Dollar has plunged to an all time low as
the Nigerian currency traded for N506 to $1 down from N500 recorded on Friday, February 10, 2017.
Against the British Pounds Sterling and the European Euro, the
Nigerian Naira weakened to N617 and N531 respectively down from the N615
and N530 recorded the previous day.
However, on the official market, it remained at N305.25 to dollar, where it has been trading since last August.
The latest crash of the Naira is the worse in the History of the country.
The Head of Africa Research, Standard Chartered Bank, Razia Khan,
blamed the fall on scarcity of foreign currency in circulation. She
said: “Despite rising FX reserves, it’s the amount of the FX that is
supplied that matters. The parallel market, by its nature, is
particularly sensitive to demand-supply imbalances, and has a tendency
to overshoot,”
Last week, the Central Bank of Nigeria sold $660m in three and
five-month currency forwards at an auction aimed at clearing a backlog
of dollar demand but traders stated it was not enough to satisfy the
market.
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