On Tuesday, the naira hit a new low of N1,080 per dollar on the black market, continuing its free-fall against the dollar.
This is a 4.85 percent reduction when compared to the N1,030/$ it traded on Monday.
According to jerrymusa.com the naira has been losing steam for two days now after a brief rally late last week after news came that the Central Bank of Nigeria had begun clearing some of its FX backlogs.
The naira has lost 13.68% of its value, or N130, against the dollar since trade closed on Friday at N950/$. Bureaux de change owners reported that the exchange rate for Tuesday was between N1,060 and N1,095.
Kadri, one of the businesspeople, told our correspondent, “The dollar is N1,040 if you want to sell. It’s N1,080 if you’re interested in purchasing.
If you want to buy a dollar, another person named Awolu replied, “The dollar is N1,095”. I’m interested in purchasing from you at a price of N1,070; Muhammad says the dollar can be purchased for N1,050. If you’re interested, we’re asking for N1,060.
According to data from the FMDQ OTC Securities Exchange, on Tuesday, the official market value of the naira dropped to N869.91/$ from N809.02/$ on Monday.
Aminu Gwadabe, president of Nigeria’s Association of Bureaux De Change Operators, blamed speculators on Monday for the decline.
In an interview with our Correspondent, he said, “Sustainability is a key factor for investors.” When they discover the injection is intermittent, they respond. They start to respond. What we are seeing is the market’s response.
Additionally, there is opposition. Some people bought at a higher price, which this does not favour. No one can afford any more setbacks at this point.
Meanwhile, the Nigerian administration has warned citizens not to store foreign currencies out of fear that the country’s new policies will come as a surprise to them.
At the “Cowries to Cash” lecture and lunch held on Tuesday in Abuja, Special Adviser to the President on Economic Matters Dr. Tope Fasua made the announcement.
He let slip that the government of President Ahmed Bola Tinubu is formulating plans to fortify the naira. Fasua predicts that the government’s recent actions in the FX market will continue.
“For those who are speculating, praying, and wishing that the currency would become nonsense,” Fasua, who was there to represent Vice President Kashim Shettima, said, “I believe that the central bank is rolling out the policies, and the government that I serve, led by the President, will shock some of them.”