The naira has taken a downward turn once again especially the United States dollar, rendering it to be currently valued at 352 against the greenback at the parallel market on Tuesday, February 16, 2016.
Foreign exchange dealers noted that the increasing pressure on the naira is caused by high demand for the dollar by importers and speculators.
The local currency as at Monday, February 15, 2016 had weakened to 345 at the parallel market, having hit 338 last Friday as importers scrambled for the dollar to meet foreign needs.
The central bank has left its official rate unchanged at N197 to the dollar on its interbank window.
The acting President, Association of Bureau De Change Operators, Aminu Gwadabe, told Reuters on Tuesday, “Most individuals who sell (dollars) to us are no longer willing, but demand is piling up,”
In an effort to conserve the external reserves, which are now at their lowest in more than 11 years, the Central Bank of Nigeria banned dollar sales to BDC operators, sending the naira to record lows at the black market, and later stopped daily sales to the interbank market.
The Chief Executive Officer, Economic Associates, Dr. Ayo Teriba, feels the situation shouldn't have deteriorated to its current point.
“This is 2016 and not 1986, 1992 or 1995; the conditions are not the same. The global environment has liquidity now that Nigeria can attract. The situation is not like 1986 when the global environment was tight.
The current economic problem has become a cause of concern for both the upper and lower class categories of the society as both sides have begun to nurse fear further meltdown.