Naira Crashes to New Low At N390/$

The naira, on Wednesday, August 3, crashed to its lowest level at parallel market, since the commencement of the new foreign exchange regime.
The Nigerian currency exchanged for N390 to the dollar on the parallel market, lower than the N382 to a dollar from the previous day.

The Naira dropped 9 points to trade at N390/$1 on Wednesday afternoon and also crashed to N500 to one pound and N422 to one Euro.

Meanwhile, on the interbank market, the naira strengthened to N311.03 to the dollar yesterday, higher than the N316.83 to a dollar from the previous day.

Although scarcity of the greenback in both the foreign exchange and interbank markets has triggered the lingering plunge, currency traders have opined that the lack of intervention from the Central Bank of Nigeria, CBN, is not helping to prevent the free fall.

A currency analyst, who craved anonymity attributed the protracted slide of the nation’s currency on the parallel market to demand pressure.

He said demand for FX for most of the 41 items that had been excluded from the interbank market was still being met with dollars bought from the parallel market.

On the other hand, economists have advised the federal government and the Central bank of Nigeria (CBN) to consider alternative policy options to halt the currency’s decline.



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