Naira Depreciates Further, Sinks To Record Low

by on January 14, 2016
The Naira on Wednesday sank to a record low of 300 per dollar at the black market, after the Central Bank of Nigeria (CBN) stopped dollar sales to retail foreign exchange operators.
The Naira, pegged at about 197 to the dollar on the official interbank market, was quoted between 290 and 300 by several bureaux-de-change operators. The unofficial market accounts for less than 5 per cent of total dollar trades in Nigeria.
A currency trader, Harrison Owoh, said the further depreciation of the Naira was as a result of the CBN’s announcement to stop the sale of foreign exchange to BDCs.
Owoh, the Managing Director of HJ Trust Investment Limited, said that the CBN was yet to issue circular informing BDCs on the latest development, adding that they got the information from the pages of newspapers.
According to him, by CBN allowing dollar deposits into domiciliary accounts means the banks would now have more foreign exchange at their disposal, adding that the announcement that the BDCs should source for foreign exchange from the autonomous market needed to be defined by the CBN.

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