The Nigerian national currency took a downward turn as it falls further in the foreign exchange market.
It was anticipated that the recent announcement made by the CBN to stop foreign exchange sales to Bureau De Change operators will positively affect the Naira value.
This has been the opposite, as it now weighs three hundred against a dollar.
Experts on financial matters predict that this decline will be persistent, though some private sector operators view it as a welcome development.
According to a report from Punch newspaper, the Acting President, Association of Bureau De Change Operators, Alhaji Aminu Gwadabe was quoted on the subject saying, ““There is cut of (dollar) supply to the market. The BDC sub-sector has been murdered. We are not coping. The naira is going to head northwards. There is no solution in sight.”
Professor of Financial Economics at the University of Uyo, Akwa Ibom State, Leo Ukpong also said, “I don’t think the stoppage of dollar sale to the BDCs will solve the problem. The currency will depreciate some more.”
“This move will make the naira to weaken more as demand for dollar will skyrocket because of the short supply.”
At the moment, it appears the weakness of the Naira in the foreign market will endure for quite a while until the appropriate authority find a lasting solution.
The call for devaluation is one of the unexplored options available to the country.