Naira Falls to All Time Low of 325 Over Dollar Shortage

The Nigerian naira has fallen to a record low of 325 to the dollar at the parallel market on Thursday.

According to reports, the local currency had closed at 318 against the green back on Wednesday, after hitting 313.5 and 310 on Tuesday and Monday, respectively. The Central Bank of Nigeria has left the official exchange rate unchanged at N197 to the dollar on its official interbank window.

The Acting President, Association of Bureau De Change Operators, Aminu Gwadabe, said, ”We see the naira falling further in coming days if the central bank fails to lift the dollar restriction.”

President Muhammadu Buhari is burdened that further depreciation will affect poor Nigerians, but the CBN’s refusal to revise the pegged exchange rate has widened a chasm between official rate and the parallel market.

The Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane, complained that its high time the CBN came up with a forex policy that would address the forex crisis confronting the nation.

“Nigerians are perplexed at the endless slide of their currency, which is now trading at N325/$, the lowest point ever.

“This is happening even when the oil price is up at $31pb. The debate as whether to devalue the naira is not the real issue. The discourse should be whether we need an exchange rate policy or not. The absence of a policy is a recipe for economic anarchy and a race to the bottom.”