Currency now valued at 391/dollar in exchange rate

The naira currency continued its daily decline on the parallel market, affecting Africa's biggest economy now valued at 391 per dollar.

According to Punch, naira went to a free fall mode against the dollar at the black market, having lost 26 per cent of its value in less than two weeks.

Forex dealers and financial experts linked the persistent fall of the naira to panic buying of the dollar and other major foreign currencies by importers, individuals and businessmen.

Bureaux De Change operators in Marina, Ikeja and Apapa in Lagos, and Abuja, told our correspondent on Thursday that there were no signs yet that the rising demand for forex, especially the greenback, would abate any time soon.

READ: Currency depreciates further to 372/dollar

According to a currency strategist at Ecobank Nigeria, Mr. Kunle Ezun, the falling naira-dollar exchange rate at the parallel market has to do with the fundamental problem of inadequate forex supply that the nation is grappling with.

“Unless we do something about the supply problem we are having with the foreign exchange reserves, it is a simple and basic economics law – the demand is far above supply. We don’t have the forex supply that can match our demand. The naira may sell for over 400 against the dollar over the next weeks because it is still falling.

“In my own opinion, we may be forced to freeze importation of non-essential items in the near future. There are many solutions but a drastic action may have to be taken if things continue this way,” he said.

The currency has experienced a massive streak of depreciation amidst economic strain caused by low crude oil price.