Nigerian currency drops to N280/dollar as 1 pound surpasses N400 mark

folarin okunola

December 18, 2015 3:12 PM

The naira started yesterday at N274 to a dollar, but hit N280 to a dollar by late afternoon with the pound soaring to N405 and the Euro nearing N400 as well.

Nigeria's President Muhammadu Buhari addresses a plenary meeting of the United Nations Sustainable Development Summit 2015 at the United Nations headquarters in Manhattan, New York September 25, 2015. REUTERS/Andrew Kelly

According to various reports, the Naira dropped to a new historic low against the US dollar as experts and economics warn that the Nigerian currency is falling with no end in sight, with other analysts predicting that it could as low as N500 to a dollar.

The naira started yesterday at N274 to a dollar, but hit N280 to a dollar by late afternoon with the pound soaring to N405 and the Euro nearing N400 as well.

READ: Naira falls to new lows on unofficial market as banks cut dollar limit

According to a report by Per Second News, the drop came after a rate rise by the government failed to support the currency while stock market indexes also dropped, following weaker oil prices.

The Naira has now dropped by over 40 percent over the course of the year as it continues to be weakened by a steady, continuous drop in oil prices along with a general risk aversion to Nigeria’s assets and a decline in the economy.

folarin okunola