Naira Sinks To 375 Per US Dollar

The Naira on Wednesday suffered heavily at the parallel market depreciating by N7 against the dollar. Investigation reveals that the parallel market exchange rate rose from N268 per dollar on Tuesday to N375 per dollar at the close of business on Wednesday.

The lack of dollar supply in the interbank market was aggravated by lack of intervention dollar sales by the Central Bank of Nigeria (CBN) causing the naira depreciate by 12 in the market in ten days. However the naira appreciated yesterday at the interbank spot market with the interbank exchange rate dropping to N294.23 per dollar from N294.57 on Monday. It was gathered that only one transaction worth $380,000 was transacted yesterday and it was conducted at 11.50 am more than three hours after the market opened. The interbank market had seen just $300,000 traded on Tuesday, again in one transaction.

Economists on Wednesday advised the Federal Government and the Central Bank of Nigeria to review their policies and introduce measures that would turn around the dwindling fortunes of the nation’s economy.

They spoke against the backdrop of the persistent fall of the naira against the dollar, with the local currency exchanging for 375 against the greenback at the parallel market on Wednesday; the imminent economic recession; and the spike in inflation to 16.5 per cent in June.

The Chief Executive Officer, Economic Associates, Dr. Ayo Teriba, who noted that the global fall in crude oil prices had made the nation’s oil revenue to nosedive, said there was a need for the Federal Government to seek foreign exchange from alternatives sources in order to cover for the shortfall.

He said Nigeria and its economic managers could not afford to fold their arms and allow the situation to get worsened. Rather, he said efforts must be geared towards implementing policies that would fight negative growth and inadequate liquidity at the interbank market.

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