Nigerians Scramble For The Dollar As Naira Plummets Further

Naira depreciates to 304 per dollar

The Nigerian Naira is expected to suffer more at the parallel market this week after shedding nine per cent of its value last week, foreign exchange dealers and economic experts have forecasted.

Naira to suffer more as Dollar demand continue to Increase

It was gathered that the local currency, last week, fell from 310 to 338 following the acute shortage of the Dollar as desperate Nigerian importers scramble to get the greenback to meet their obligations overseas.

The local currency also closed at 325, 318, 313.5 and 310 on Thursday, Wednesday, Tuesday and Monday, respectively.

The Central Bank of Nigeria (CBN), however, did not tamper with the official exchange rate as it is still N197 to the dollar on its official interbank window.

“The situation has got to the point of hysteria now; everybody wants to hold dollars. So the demand is rising and piling up,” the Chief Executive Officer, Cowry Asset Management Limited, Mr. Johnson Chukwu, said.

“We see the naira falling further in coming days if the central bank fails to lift the dollar restriction,” the Acting President, Association of Bureau De Change Operators, Aminu Gwadabe, said.

Reuters had on February 9, reported that the plunging global oil prices have battered Nigeria’s oil-dependent economy, with external reserves down to an 11-year low at $27.89bn on February 9.

Meanwhile, economic experts and forex dealers expect the Naira to fall further at the parallel market this week as demand for the greenback continues to soar.

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