The unofficial exchange rate between the Naira and the Dollar hit an all time low of N409/$1 as scarcity swept through the retail end of the black market.
The exchange rate sold for as high as N410/$1 in some markets outside Lagos according to an independent survey by our research team. Sellers quoted for higher prices, with the knowledge that the scarcity was rife and unlikely to end soon. Meanwhile the official inter-bank rate closed at N316/$1.
Traders confirmed Nairametrics fears that the recent suspension of 9 banks by the CBN is the major reason for the depreciation of the Naira.
“The suspension of some banks from transaction in the forex market has really increased pressure on the market,” said Aminu Gwadabe, President of the Bureaux de Change Association.
As explained in earlier articles, the pattern we have noticed since January is that the rate at the parallel market began its unabated rise when the CBN came up with brash policies. From banning BDC operators from the interbank market to limiting the amount of dollars that can be withdrawn and more recently banning 9 banks…these decisions, more than anything else, jolted the forex market.
Ironically, the fall in oil prices, which has remained stable lately and even the increase in pipeline bombings has not impacted on the value of the Naira as much as the actions of the CBN.
A rash of policy directives, rhetorics and inactions have caused more harm to the country’s exchange rate, making it nearly impossible for it to recover to pre-January 2016 levels. The Naira is now officially the world worst currency and the Apex bank has a lot to do with that.
As ordinary Nigerians wallow in financial distress, actions and inactions of those saddled with the responsibility of managing our currency are gradually chipping off the value of the naira making it nearly impossible to recover without a re-donomination.