Naira Sinks Deeper to N391 Per Dollar at Parallel Market

The volatilty in the unofficial market on led to a steep fall in the value of the naira to exchange at N391, o per dollar, on Thursday, February 18.

The naira had yesterday exchanged at N372 to dollar on Wednesday, an indication that it is losing an average of N20 per day as importers scramble for the greenback.

President, Association of Bureau De Change of Nigeria (ABCON) Aminu Gwadabe said the importers are busy mopping up any dollar they can find because they are unsure of what will happen the next day.

He said the Central Bank of Nigeria (CBN’s) decision not to sell dollar to the bureaux de change (BDC) operators has created the ongoing panic in the market. He said the CBN is even rationing dollar for manufacturers and others that legitimately need the greenback to fund their operations.

Gwadabe said his group is discouraging BDCs from buying or selling at the current rate because it does not add value to the economy.

“We have supported the government and will keep doing so. So, we have advised members of ABCON not to buy at current rates,” he said.

“In my own view, the central bank should address the supply side of the market by allowing oil companies and banks to sell dollar to bureau de change operators as an immediate measure to reduce pressure on the naira,” Gwadabe.