Naira Crash : The Weakest For Both Official And Parallel Market Since 2017 Finance Experts Reveal.

Naira Crash : The Weakest For Both Official And Parallel Market Since 2017 finance experts reveal.

The Naira is said to have crashed to a four-year low in the parallel market after all efforts by the Central Bank’s to coax banks to sell more Dollars to customers failed to bridge the widening gap between the official and street rates.

As at Wednesday, June 16, reports gathered revealed that
Some Unauthorized dealers were offering the naira at 502 per dollar as against 500 from last week.

The rate widens the spread between the official and the parallel market rate to 22% when compared with the spot rate of 411.13 Naira a Dollar as of Wednesday.

Nigeria, Africa’s biggest economy, has constantly devalued its currency thrice since March last year as lower oil income, which accounts for about 90% of dollar earnings, put pressure on external reserves. 

Earlier , Goldman Sachs Group Inc. forecasts the Naira could weaken to between 440 to 460 a dollar in the short term.

Meanwhile, Central Bank Governor Godwin Emefiele met with chief executives of commercial banks last week, and they agreed on the use of lenders to increase Dollar supply and operate special accounts to meet the requirements of business and travellers.

The central bank will use lenders to make more foreign currency available to buyers, at around the official rate of between 410 Naira to 412 Naira to the Dollar to reduce pressure on the streets where rates are crashing from excess demand.

Abubakar Mohammed, chief executive officer of forwarding Marketing Communications bureau de change in a statement said :

Dollar demand is high; people are buying for storage,” “There is no effect yet from any increased sales by the banks.”

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.