Home Business Naira Hits New Low Against The Dollar

Naira Hits New Low Against The Dollar

62
0

One hundred dollars

Monday was an unfortunate record making day for the Naira, which The naira which recorded another low of 241 against the dollar at the parallel market as the Central Bank of Nigeria’s restrictions on foreign exchange sale fuelled unofficial trade in dollars, Reuters reports.

The ban on importers from accessing the Nigerian foreign exchange markets for the importation of 41 items had led to the volatility of the naira-dollar exchange rate at the black market.

Since June 23 when the new forex rule became operational, the naira has fallen by 10.5 per cent from 218 to 241 against the greenback.

Foreign exchange dealers said the artificial scarcity of the United States currency still pervaded the market.

The new forex rule had led to huge demand at the parallel market, causing dealers to hoard the dollar in anticipation of further fall in the naira.

The central bank had however said it would not be focusing on the thinly-traded parallel market when determining the exchange rate, adding that people preferred to use the unofficial market for undocumented transactions.

Foreign investors are still waiting for the naira to be devalued before they invest in naira-denominated assets.

LEAVE A REPLY

Please enter your comment!
Please enter your name here