Which Way Naija? Naira Falls To 338 As Dollar Scarcity Lingers

The Naira has hit an all time record low of 338 against the greenback on Friday, a day after the Bankers Committee announced its decision to stop providing foreign exchange for school fees and medical bills payment, Punch Reports

The Bankers Committee had on Thursday announced the decision to include school fees and medical bills among the items that are not valid for forex.

Forex dealers said the continued shortage of forex in the economy and the Bankers Committee’s sudden decision to stop funding school fees and medical bills payment had combined to increase demand for the United States currency.

“The negative perception about the naira, and the demand for forex by importers who have overseas obligations have caused the demand pressure. This has been exacerbated by the recent decision by the banks not to provideforex for school fees medical bills payment,” a forex dealer said under condition of anonymity.

The local currency had closed at 335, 318, 313.5 and 310 on Thursday, Wednesday, Tuesday and Monday, respectively.

The CBN has left the official exchange rate unchanged at N197 to the dollar on its official interbank window.

“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, had said.

Tumbling 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, Reuters reported.

President Muhammadu Buhari is concerned that further depreciation will hurt poor Nigerians, but the CBN’s refusal to revise the pegged exchange rate has widened a chasm between official rate and the parallel market.

338 Nair to 1$???? Ha. 

 

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