Currency slumps to 43-year low to trade at N305 per dollar on parallel market

folarin okunola

January 14, 2016 8:03 AM

From an average of N287 per dollar on Tuesday, the naira slumped to a 43-year low to close at N305 as the scarcity of dollars worsened in the unofficial market.

Nigeria Naira Notes

According to various media reports, the naira dropped to a record low of 305 per dollar in the parallel market on Wednesday as the new policy implemented by the Central Bank of Nigeria (CBN) failed to lift the currency.

From an average of N287 per dollar on Tuesday, the naira slumped to a 43-year low to close at N305 as the scarcity of dollars worsened in the unofficial market.

In similar fashion, New Year stock exchange slump continued into its eight day yesterday, with a total of N1.22 trillion losses to investors.

READ: Nigeria's currency depreciates further to N295 to dollar at parallel market

Losses across the board heightened in the last 48 hours with a cumulative two-day N430 billion loss following the increased foreign exchange management crises which follows the CBN’s decision to cease sale of foreign exchange to BDCs.

Starting Monday when the CBN stopped its weekly sale of dollars to BDCs, the naira has been steadily depreciating against the dollar.

According to the Vanguard, BDC sources say the exchange rate is uncertain as the rate changes from time to time.

Financial experts believe that the CBN’s policies are having telling negative effects on the economy, causing investor to seek safer securities elsewhere on the continent.

folarin okunola