The Nigerian Naira extended its decline against the United States Dollar at the parallel market known as the black market to exchange at N530 to a US Dollar on Friday.
The local currency also depreciated against the British Pound and Euro common currency to N720 and N620 respectively as scarcity across key forex segments continues.
The value of the Nigerian Naira started falling immediately after President Muhammadu Buhari took over in 2015 when Africa’s largest economy plunged into its second economic recession.
Since then, the administration has introduced a series of measures to curtail further decline in Naira value and simultaneously further economic productivity. However, the embattled currency has continued to decline against its global counterparts and was devalued about four times in the last 18 months to curb capital flight.
At the bureau de change section, the Naira exchanged at N528 to a United States Dollar while against the British Pound and the Euro common currency it sold at N720 and N619, respectively.
On July 27, at the end of the Monetary Policy Committee meeting, the Central Bank of Nigeria announced it has stopped the sale of forex to registered Bureau De Change Operators, who it claimed had turned themselves into “agents that facilitate graft and corrupt activities of people who seek illicit fund flow and money laundering in Nigeria.”
The apex bank immediately announced Deposit Money Banks as the replacement and urged genuine businesses and individuals looking to purchase forex to approach their banks.
Still, scarcity persisted as the majority continues to patronise the black market presently facing shortage because of the recent measures. Most Nigerians in need of forex can not approach banks given forex restrictions imposed on certain items and requirements necessary to be approved for purchase.
At the Investors and Exporters forex window, the largely inaccessible forex segment, the Naira opened at N411.42 to a United States Dollar better than the N411.67 it closed on Thursday.
