Fakoyejo OlalekanThe United States currency, Dollar, gained against the Naira on Thursday at the official foreign exchange market, while the Nigerian legal tender continued to sell at a high for persons in need of the greenback in the black market.
Naira exchanged at a high of N420.5 to one dollar, with the U.A currency appreciating by 0.12% from the N420 to $1 both currencies exchanged for the previous day, nearing the N420.75/$1 they traded for on Tuesday.
The depreciation of naira ride on the high demand of the dollar, after total forex exchanged rose to a value of $136.35 million, up from the $124.62 million reported on the Investors and Exporters (I&E) window.
Just like the naira grew weaker against the dollar at the Investors and Exporters window backed by the Central Bank of Nigeria (CBN), it shared same fate in the black market, losing value against the U.S currency.
According to report from the peer-to-peer market, the Nigerian currency couldn’t hold its Wednesday ground, as the dollar got more expensive by N1 more, having traded at N617/$1, up from the N616 to $1 reported on Wednesday.
The continued depreciation comes amid the warning of the President of Association of Bureau de Change (BDC) Operators of Nigeria, Aminu Gwadabe, who said speculations could raise the exchange rate to N800/$1 amid CBN’s decision to ban sale of forex to its members.
“We are seeing speculation; we are seeing hoarding. You don’t need money now, but you are scared that if you don’t buy now, in the next six months, it may be N800. So, this is the issue.” Gwadabe said three weeks ago.
With the naira unable to recover against the dollar, the offer of the Bureau de Change operators might be its saving grace. The group’s President had urge CBN Governor, Godwin Emefiele to lift the ban, to enable the members access more forex to cushion the pressure on naira and offset the high demand for dollars.
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