U.S. Dollar Free Fall Against Naira

• U.S. Dollar Free Fall Against Naira

The U.S. dollar continues its free fall against the Naira on Monday, following additional sales of $180 million by the Central Bank of Nigeria for settlement of various transactions.

The local currency gained N10 to exchange at N450 to a US dollar at the parallel market, while both the Pound Sterling and the Euro exchanged at N560 and N470 respectively.

On the interbank market, the Naira traded at N305.50 against the US dollar.

While at the Bureau De Change segment, the Naira closed at N399 to a dollar, the CBN stipulated exchange rate. The Pound and the Euro closed at N610 and N500.

Currency traders expressed confidence in the new Forex policy and its ability to reduce scarcity and improve the Naira value.

However, some traders that are still in shock of the drastic appreciation, believed its a temporary situation and that the local currency would sink further.

According to the Nigerian News Agency, “Some of them still live in the denial of the present reality for their selfish gains.”

Also, the figures showed the parallel market rates for both the Pound Sterling and the Euro single currency are lower than the Bureau De Change rates. Meaning, the CBN efforts at overhauling the parallel market is beginning to manifest as the Bureau De Change operators will start experiencing more patronage as they now offer better rates.