The naira fell to a new low on Thursday, closing at N996.75 per dollar in the official market and N1090 per dollar in the parallel market.
The naira’s decline has come as a surprise to many analysts, who had expected the Central Bank of Nigeria’s (CBN) recent move to clear some of its FX backlog to boost confidence in the currency.
The domestic currency depreciated 12.24% to close at N996.75 to a dollar at the close of business on Thursday, data from the NAFEM where forex is officially traded, showed.
Nairametrics’ analysis suggests that the official and parallel market exchange rates are nearing parity. The gap between the official rate and the black market rate has narrowed to approximately N100, which is close to a 10% premium, a margin that is generally considered acceptable.
What the expert is saying: Amid the rising free fall of the Naira both at the official Nigerian Foreign Exchange Market (NAFEM) and the unofficial market, financial experts had called on the Central Bank of Nigeria (CBN), to de-dollarise the economy by declaring any local transactions in US dollars illegal.
Speaking on strategies that can be used for the naira to regain strength, the founder and chief consultant of B. Adedipe Associates Limited (BAA Consult), Dr. Biodun Adedipe, said the CBN should stop government agencies from charging local operators and entities in US dollars.
According to him, the sale of crude oil to local refineries should also be made in Naira rather than in US dollars.
Nairametrics earlier reported that the Association of Bureau de Change Operators of Nigeria had warned those speculating against the naira to be wary.
The President of ABCON, Aminu Gwadabe gave the warning and noted that the Central Bank of Nigeria was set to inflict pain on currency speculators.
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