Naira in free-fall, sells N280 to $1 at parallel market

The Nigerian currency on Monday depreciated further at the parallel market, following implementation of the Central Bank of Nigeria’s downward review of foreign exchange sales to Bureau De-Change.

The CBN had earlier reviewed downward the 150,000 dollars offered weekly to BDCs to 10,000 dollars, while the number of licensed operators was reduced to about 1,000 from 4,000.

At the close of trading late Monday afternoon, the naira depreciated by N3 or N280 to dollar, compared with N277 it closed on Friday.

The naira’s deep swing was also visible against other international currencies as one pound sterling and one euro were exchanged at N490 and N290 respectively.

The official exchange rate across the commercial banks remains at N197 to the dollar.

Most of the parallel market operators attributed the scarcity of the foreign exchange to the CBN’s policy review and limited earnings from crude oil.

A currency dealer in Lagos, Salisu Ahmad, said the naira depreciation followed limited supply of foreign exchange and a vacuum created by a CBN policy.

“The supply of foreign exchange has been limited since the first week of the year and the demand for dollar and other international currencies is very high.

“So what we are witnessing is that some operators are taking advantage of the situation,” Mr. Ahmad said.

Another parallel market operator, Kakia Mohammed, said further depreciation of the naira could be linked to the commercial banks’ recent offering of lower denominations of dollars to customers.

“Commercial banks’ approach has also pushed numerous customers to chase limited foreign exchange available to BDC operators,” said Mr. Mohammed.

He also said some dealers had induced the artificial scarcity by refusing to sell foreign exchange on the speculation of a possible monetary policy by the CBN during the week.


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  • aromeo

    EDITOR SIR,

    Nigerians do not raise their gaze enough to see the gathering storms. Nigeria’s economy is what’s on free fall.
    President Buhari and his shambolic cabinet have no clue on what to do and got nothing right since 29th May.
    Worse of all, Buhari makes a budget of waste that’s neither a solution to the economic crisis nor a response.
    Buhari budgets to buy tyres costing 185 million Naira plus 3.5 billion worth of cars for his presidential office.

    • Dafe Omohorinwhon

      With the Naira falling along with everything else, official stealing becomes an oppressive burden.
      I want to join well-meaning Nigerians who ask that the government of Delta State be suspended
      and the state put under interim emergency rule administration consistent with the 1999 Constitution.
      Law and order has broken down irreparably in Delta state; with killings and kidnappings the leitmotif.
      Delta state government of IFEANYI OKOWA now lacks in ability to govern the state according to law.
      Thefts override the Delta state government and ruin public finances, besides tearing Delta asunder.
      There is no government properly so-called in Delta state today – a sorely obvious fact for all to see.

      • quinox

        Delta State Officials dragged to America For Fraud

        “In a petition addressed to the United States Department of Justice,
        Criminal Division, Delta state residents stated that DELTA government officials
        violated the Foreign Corrupt Practices Act (FCPA) of 1977 by Chevron Nigeria
        Limited (CNL) in its dealings with some officials of Delta State government,
        regarding making payments and the offer of job slots.

        In their petition Mr. Ede and Mr. Odinma accused the Chairman of Delta
        State Oil Producing Areas Development Commission (DESOPADEC), Mr. Godwin Ebosa
        and the Vice Chairman of Delta State Government Waterways Security Committee,
        Mr. Mode David Akoma of fraudulently and corruptly receiving monies from CNL to
        the detriment of people of the surrounding areas.

        An independent investigation carried out by SaharaReporters revealed
        that in 2011 over N15 million was deposited by Chevron into Union Bank G&A
        account 0036024235. The account belonged to Mr. David Tonwe, the Chairman
        of Concerned Itsekiri Coastal Dwellers, Warri. The money was supposed to be
        dispersed to the above-mentioned government officials.”

        …….SAHARA REPORTERS

    • Quirkycox2016

      “Shocking details emerged from the recently presented 2016 budget that
      the executive arm of the government would spend the lion share of N5.87
      trillion, or about 96.5 per cent of the total N6.1 trillion. Then, about N205
      billion or 3.5 per cent goes to the other arms of government. Legislature
      and the Judiciary will get N115 billion and N90 billion respectively,
      Vanguard revealed. The breakdown of the budget also indicates
      that the government intends to spend N39 billion in running
      the Office of the President with major allocations going to
      car purchase at N3.9 billion and another N189 million to
      change tyres for specified vehicles in the Presidency.”

      ………….NIGERIA BULLETIN

      • Burbank

        Old news.
        Next?

    • Burbank

      “Nigeria’s economy is what’s on free fall.”

      Same applies to most of the world now.

  • musa aliyu

    These dubious BDCs, will never end well. Why do Nigerians have to operate a dollar account in the first place? Why not scrap this dollar nonsense and allow customers walk to the banks to source any dollar for any foreign transaction? Why must bankers be allowed to milk the helpless customers dry in the name of currency trafficking?

  • bikky

    CBN governor needs to give Nigeria a break so that competent hands can take Nigeria out of shambles that Emefuele put us.

    • kevenreal

      What’s the name of our finance minister, anybody? Yorobas brought somebody that is not qualified as messenger for NOI as finance minister. Even her lowly rated PGcert from one of the most undesirable universities in Europe UEL, is fake. She was commissioner in Ogun state when she claimed she studied for that certificate which is difficult to believe because you need certain number of class attendance a week and at least 36 hours study time to pass it. How did she combine the study and her job as commissioner. I believe she has one of those well known toronto certificates loved by Yorobas.

      • ikenna

        Lol don’t mind them.

    • Höly Wähala

      Blame it on Diploma Kemi with her roadside London degree…

      • kevenreal

        Even Adamu Ciroma is more qualified than her. Dipolma from UEL for finance minister of Nigeria???? This is a shame on yorobas.

  • John Smith

    Which one is parallel market operator? Do they mean black market operator?

  • Isi Agwo

    Another one of Bokohari’s campaign promises has been met – 1 Naira exchanging for 1$. That’s brain dead “change” for Nigeria.

    • Burbank

      You still believed in that old recycled and ebunked PDP lie of N1-$1 that they then attributed to Buhari?

      • Otile

        Iro ni. You are indeed Oduafraud.

        • ’70

          @Timurlame:disqus is right!

        • Burbank

          Wrong.
          That N1=$1 is a PDP concocted fraud, maliciously attributed to Buhari.

  • Mariama(Rtd Colonel)

    Let it fall more. Was it not Buhari who got selected for promising to bring back a two-for- one in favour of the naira?Change indeed. I hope he fails and fails woefully.

  • GbemigaO

    This clueless CBN governor will kill the Naira soon with all these uncoordinated policy changes. When you continue to make policy reversal and changes nearly every month, you encourage speculation. What kind of management is this ?