Naira weakens, sells at N305 to dollar

14 January 2016, Lagos – The naira, Wednesday, depreciated further to N305 per dollar as scarcity of dollars intensified in the parallel market.

naira-dollarFrom an average of N287 per dollar, Tuesday, the parallel market exchange rate rose to an average of N305 per dollar across the country.

Since Monday when the Central Bank of Nigeria (CBN) stopped the weekly dollar sales to Bureaux De Change (BDCs), the naira has been depreciating against the dollar.

BDC sources who confirmed the development to Vanguard however said that the exchange rate situation is uncertain as the rate changes from time to time.

Vanguard investigation revealed that though the exchange rate touched N305 in major cities like Lagos, Abuja and Kano, it dropped slightly to between N295 and N300 per dollar in Lagos and Abuja at the close of business, while it closed at N305 in Kano.

Chief Executive Officer, H.J Trust BDC, Mr. Harrison Owoh, told Vanguard that the market is fluid. “You cannot quote rate for anybody now because the rate is changing every time.”

An Abuja based BDC Operator who spoke to Vanguard on condition of anonymity said that the rate closed in Abuja at N298 but was above N300 during the day. He however said that it was difficult to quote any specific rate now as the situation is unpredictable. He opined that the rate would stabilised by next week, when the market would have absorbed the impact of the new CBN policy.

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