New Telegraph

Naira falls to N860 per dollar at parallel market

The naira plunged to a record low of N860 per dollar at the parallel market yesterday from N820/$1 on the previous day, traders said. According to the traders, the Central Bank of Nigeria’s (CBN) plan to replace old notes next month with new ones continues to spur demand for foreign currencies, as politicians are rushing to convert the local currency into dollar to fund campaigns for the elections in February.

The naira was trading at the parallel market at almost double the rate in the official market, where it exchanged at N446 per dollar at mid-day. “We have seen the naira nose dive since the central bank’s announcement,” one trader said, adding the bank had also weakened the naira in its interventions and sold fewer dollars. “That’s what is driving the parallel market.” Access Bank, Nigeria’s biggest lender, said in a notice it would limit the amount of dollars it can sell to individuals in payments abroad and that it would now take longer to fill requests, in a sign a worsening dollar liquidity.

Read Previous

I’ve always seen winning, success as challenge to do more – Adeleke

Read Next

FX Shortage: Manufacturers raise alarm over delay in equipment shipments

Leave a Reply

Your email address will not be published. Required fields are marked *