Naira collapses at forex market; loses N16.50 in five days

Naira collapses at forex market; loses N16.50 in five days

Friday, January 23, 2015 6:04 pm

The Naira on Friday depreciated against the dollar as it traded at N208 from the N191.50 it sold for on Monday, Jan. 19.

The News Agency of Nigeria (NAN) reports that the new rate has made the naira to lose N16.50 within five days, with parallel market operators even revealing a more woeful experience. One operator told TheNEWS that the naira exchanged for N235 on Friday as it became very scarce to get.

The CBN’s website, however, put the Naira against the dollar at N167.50, while the Pound sold for N253.20 and the Euro stood at N193.89S

The development has resulted into speculation in the market and caused ripple effects on other currencies.

The NAN correspondent who visited some Bureau De Change and Black Market operators in Lagos, said that they could not give rates to the Pound Sterling and the Euro.

Dealers who preferred anonymity said that there was scarcity of dollars in circulation.

They said that the Central Bank of Nigeria (CBN) had stopped selling forex to the Bureaux De Change, since last year.

The dealers added that the recent review of trading positions for the forex trading positions of banks to 72 hours, also contributed to speculation in the system.

The effect, they added, was that the naira could depreciate further by next week.

NAN recalls that the CBN in November 2014 devalued the Naira to N168 to the dollar.

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