Naira Crashes To 300 Against Dollar
The Naira has continued to fall against the US Dollar, crashing to a new low of N300 to the dollar in Kano, N290 in Lagos and N292 in Abuja.
The currency has refused to strengthen, despite a ban by the Central Bank of Nigeria stopping the sales of foreign exchange to Bureau De Change operators.
According to the Acting President of the Association of the Bureau De Change Operators, Alhaji Aminu Gwadabe, the ban was not going to have any effect.
“There is cut of (dollar) supply to the market. The BDC sub-sector has been murdered. We are not coping. The naira is going to head northwards. There is no solution in sight,” Gwadabe said.
Gwadabe’s position was supported by a Professor of Financial Economics at the University of Uyo, Akwa Ibom State, Leo Ukpong, who believed the move would only weaken the Naira.
“I don’t think the stoppage of dollar sale to the BDCs will solve the problem,” Ukpong said. “The currency will depreciate some more. This move will make the naira to weaken more as demand for dollar will skyrocket because of the short supply.”
The ban, which was instituted on Monday, however drew praise from the private sector, with many applauding the apex bank’s decision.