The exchange rate on the parallel market took its biggest hit today, after the Naira traded at an all time low of N321 against the dollar in some parts of Lagos. This is a sharp decline compared with the N313 it traded at yesterday.
Operators explain that the reason for the drop is due to the huge scarcity in dollars brought about by the exclusion of the Bureaux De Change operators from accessing Nigeria’s forex market. The Central Bank of Nigeria (CBN) last month banned them from accessing its official window citing various infractions including round tripping and hoarding of dollars.
The CBN has jealously guarded the exchange reserves, while President Buhari has also vowed not to devalue the naira. Nigeria’s external reserves dropped to about $28.2 billion as at Friday January 29th 2016, the lowest since 2005.
Analysts have predicted that the Naira will continue to fall if the central bank fails to lift the dollar restriction.
