Naira continues free fall against dollar in parallel market

The Naira continued its free fall against the dollar on Tuesday, November 7, 2023, depreciating to N1,080/$ in the parallel market.

This is 4.85 per cent decline when compared to the N1, 030/$ it traded on Monday.

It is also day two of the naira losing momentum after going on a bull run towards the end of last week after news broke that the Central Bank of Nigeria had begun to clear some of its FX backlogs.

Since closing trading at N950/$ on Friday, the naira has depreciated by 13.68 per cent, losing N130 of its value against the dollar. According to Bureaux De Change operators, it traded between N1,060/$ and N1,095/$ on Tuesday.

One of the operators named Kadri in a report by The PUNCH, said “Dollar is N1,040 if you want to sell. If you want to buy, it is N1,080.”

Another named Awolu said, “Dollar is N1,095 if you want to buy. If I want to buy from you, it is N1,070” while Muhammed added, “Dollar is N1,050 if you want to sell. It is N1,060 if you want to buy it.” 

On the official market, the naira depreciated by 7.53 per cent to N869.91/$ on Tuesday from N809.02/$ on Monday, according to details on FMDQ OTC Securities Exchange.

On Monday, the President of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, blamed the fall on the activities of speculators.

He told The PUNCH, “Speculators are always looking at elements of sustainability. Once they sense that it (the injection) is not continuous, they begin to react. It is the reaction of the market we are witnessing. Also, there is resistance. Some people bought at a higher price that this does not favour. People are not willing to take further losses.”

Meanwhile, the presidency has cautioned Nigerians hoarding foreign currencies to stop, warning new government policies may shock them. A Special Adviser to the President on Economic Matters, Dr Tope Fasua, disclosed this at the “Cowries to Cash” lecture and lunch on Tuesday in Abuja.

He disclosed that President Ahmed Bola Tinubu’s administration is working on policies to strengthen the Naira. According to Fasua, recent movements by the government towards the FX market are expected to continue.

Fasua, representing the Vice President, Kashim Shettima, at the event, said: “For those who are speculating and praying and wishing that the currency would become nonsense, I believe that the central bank is rolling out the policies and the government that I serve, led by the President, will shock some of them.”
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