Naira May Succumb To N500/Dollar From Next Week

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There are strong indications that the naira may further succumb to the 500 mark to the United States dollar at the parallel market as from next week as the greenback scarcity persists.

This is coming after the Central Bank of Nigeria (CBN) had cut supply to foreign exchange operators.

READ ALSO: Naira Crashes To A New Record Low Against Dollar As CBN Prepares To Eliminate Parallel Market

The local currency was trading around N495 to the dollar on the black market on Thursday, compared to 485 per dollar last week due to dollar shortages.

The naira was quoted at 310.5 to the dollar on the official interbank window on Thursday by commercial lenders.

A trader said: “There is an acute shortage of dollars in the market because of supply being slashed by half to Bureau de Change operators from international money transfer agents, pushing the naira down.”

It was learnt that the BDC operators are now getting $8,000 each per week from Travelex against the usual $15,000 each per week.

READ ALSO: CBN On The Verge To Eliminate Forex Black Market

The naira had tumbled against the dollar to 490 on Monday from 487 last Friday, as acute shortage of the greenback continued to batter the economy and the country’s foreign exchange markets.

Before falling to 487 last Friday, the local currency had consecutively closed flat at 485 for four days in the previous week.

READ ALSO: Naira Crashes To All-Time Low Of N490 Per Dollar As Christmas Draws Near

The severe shortage of the dollar has put the naira under persistent pressure at both the official and parallel forex markets.

Datboyjerry

Datboyjerry

I am but your herald boy in the art of the pen.. An eccentric Environmental Biologist smouldered in the glorious epiphany of online journalism.If you ever find my article unduly insipid, sue me and i’ll refund you...

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