Naira Hits Record Low of N325 Against Dollar

The Nigerian currency, naira, hit a record low on Thursday at the parallel market as demand for the US dollar surges.

The local currency was exchanged at N325 to the dollar as desperate importers across the country are said to be perturbed by the situation and their inability to meet obligations overseas.

On Wednesday, the local currency was N318 to a dollar, after hitting N313.5 on Tuesday but as demand for dollar increases so is the exchange rate.

“The dollar is falling because importers need forex to bring in their goods. They cannot keep on folding their arms because there is scarcity; they must keep buying; the only thing is that the quantity may reduce,” a forex dealer said under condition of anonymity.

The exchange rate at interbank market still remains N197 to the US dollar.

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

The naira had plunged last month after CBN discontinued the sales of Forex to Bureau De Change operators and stopped daily sales to the interbank market.

The apex bank in it’s statement said the measures were necessary to reduce further depletion of the foreign reserves, which have hit 11 year low of $28 billion this year.

Traders said “commercial lenders’ credit balance with the central bank opened at N978bn ($4.94bn) on Tuesday before the bank called for the funding for forex purchases”.