The depreciation of the Naira in the foreign has happened almost on a daily basis, with the current now put at 372 to a dollar.
Forex dealers attributed the issue to panic buying of the dollar and other major international currencies by importers, individuals and businessmen.
With the naira exchanging at 372 to the dollar, the local currency has lost 20 per cent of its value at the parallel market in the last 10 days, Punch says.
This has not changed the Central Bank of Nigeria rate of N172per dollar.
A Stockbroker commented that, “Due to the rapid decline of the naira’s value, some offshore investors are booking profit and selling down their holdings.”
The situation has affected the stock market value of some major companies in the country.
Shares in Dangote Cement fell by 4.11 per cent; Ashaka Cement was down by four per cent, while Cement Company of Northern Nigeria dropped by 8.89 per cent to drag the index down.
A forex dealer at the international wing of the Murtala Muhammed Airport, Lagos, Mr. Saliu Mohammed, said the increasing demand for the greenback was overwhelming the market.
Speaking concerning the matter, the Managing Director, Cowry Assets Management Limited, Mr. Johnson Chukwu, said, “The CBN does not have the forex to manage the exchange rate today. Unless we adjust the exchange rate, things may continue to get worse. As it is today, the naira can no longer be a store of value, going by the rate at which it is losing its value at the parallel market.
“Most people are buying dollar to store their wealth. We cannot ignore the parallel market because that is where most people are holding their transactions. A timely intervention by the Ministry of Finance and the CBN to give a clear guidance on how they intend to manage the exchange rate will save the day.”
At the moment, no respite is in view concerning a possible end to the issues plaguing the naira.