Naira Sheds 1.16% To Trade N350/ Dollar At Parallel Market

Although the naira had declined marginally to N346 to the dollar on Tuesday from N345 to the dollar, it plunged further in value to N350 yesterday.

Analysts and currency traders say they expect increased dollar inflow into the market in the next few days as the CBN announces the new market guidelines.

Analysts however say the decision to create a dual exchange rate with the introduction of another exchange rate segment for critical transactions, opens the market to abuse.

An analyst at Ecobank, Olakunle Ezun noted that “as much as the flexible exchange rate policy is good for the economy, the fall out of a dual exchange rate system will not be. This is because it will create room for round-tripping as there are no measures for checkmating it.”