The Nigerian naira on Wednesday, February 17, weakened further to ₦385 per US dollar and ₦505 per British Pound at the parallel market, while the official interbank rates remain stable at ₦199.34.
It was gathered that the demand for dollars to pay for Chinese goods was part of the reason for the latest decline.
“You know China had been on its one month annual holidays. But they resumed work on Monday, and people have to complete payment for goods ordered before the holidays,” a BDC operator said.
They had made 30% down payment to order the goods and they now have to pay the 70% balance otherwise they will lose the 30%.
That is why they are desperate and ready to buy dollars at any rate. Meanwhile supply is scarce and those who have dollars are not willing to sell because they might also need the currency soon”.
The rapid fall of the Naira had been traced to the Central Bank of Nigeria’s (CBN) restriction policy on the weekly sale to Bureau de Changes with dollars on January 12th, 2016.