Naira Sky Rockets to 215 Against the Dollar

 

The naira, on Friday, depreciated against the dollar as it traded at N208 from the N191.50 it sold for on Monday, January 19. (it's about N215 as of today)

The News Agency of Nigeria (NAN) reports that the new rate had made the naira to lose N16.50 within five days. The CBN’s website, however, put the naira against the dollar at N167.50, while the pound sold for N253.20 and the euro stood at N193.89.

The development has resulted into speculation in the market and caused ripple effects on other currencies. NAN correspondent who visited some bureau de change and black market operators in Lagos said that they could not give rates to the pound sterling and the euro. Dealers who preferred anonymity said that there was scarcity of dollars in circulation. They said that the Central Bank of Nigeria (CBN) had stopped selling forex to the bureaux de change since last year.

The dealers added that the recent review of trading positions for the forex trading to 72 hours also contributed to speculation in the system. The effect, they added, was that the naira could depreciate further by next week. NAN recalled that the CBN in November 2014 devalued the naira. (NAN)