Naira Slumps 0.7% On Parallel Market

The Naira on Wednesday continued to depreciate on the parallel market amid mixed recent reactions to the forex policy of the Central Bank of Nigeria (CBN).

The News Agency of Nigeria (NAN) has reported that the Nigerian national currency lost N2 to exchange at N297 to the dollar, from N295 it traded at on Tuesday.

The Naira remains fixed at N197 to the US Dollar at the official interbank window.

Market traders said that the ongoing demand for the US Dollar by importers has continued to fuel the depreciation of the Naira on the parallel market.

Meanwhile, some stakeholders involved in forex market operations have expressed divergent views on the impact of the recent forex policy of the CBN regarding the Naira.

The Association of Bureaux de Change Operators of Nigeria (ABCON), in a communiqué signed by several of its members, urged the CBN to reverse its ban on the sale of forex to its affiliates,.

The association said that the ban would impact on the value of the Naira negatively.

READ ALSO:  Federal Government Imposes Stamp Duty On Nigerians

They called on the CBN to include them in making decisions that could affect the foreign exchange market.

Professor Sherifadeen Tella of the Department of Economics, Olabisi Onabanjo University, Ago Iwoye, Ogun, said the new forex policy of the apex bank was a good idea and in the right direction.

He noted that there is not single case in the world where the central bank of a country had sold forex to BDCs, pointing out that BDCs in Nigeria were operating like the parallel market and not entirely legally.

READ ALSO:  CNN Reports On Nigeria’s Oil Price Slump Woes

If you want to keep track of the issues and events that will effect the economy and the strength of the Naira, you can read our updates on the price of oil and the Naira – US Dollar exchange rate on the parallel market.

The post Naira Slumps 0.7% On Parallel Market appeared first on Nigeria News today & Breaking news | Read on NAIJ.COM.