The Nigerian naira depreciated to its lowest level in 48 years, trading between N540 and N545 to a US dollar in Lagos on Thursday.
In Abuja, the green back exchanged for between N538 and N540 to a US dollar in the parallel market.
Traders in the market who usually converge on locations around Sheraton Hotel, Wuse Zone 4, Abuja were upbeat on Thursday about the development.
One of them who spoke to The CONCLAVE on phone said excitedly: “Oga, dollar is high now, but I don’t know what is responsible for it.”
Parallel market and bureau de change (BDC) traders in Lagos told said that the naira was falling rapidly against the greenback.
“For people that don’t buy today, it will be more expensive tomorrow,” Ibrahim Ahmad said.
“The dollar was going for N530 earlier today (Thursday, September 9, 2021), but now it’s N545, if you’re buying anything below $1,000.”
Another trader at Lagos Island said he did not understand the reason behind the sudden drop.
“We felt N530 was the worst we would see this year, but look at us selling at N540, and there’s no obvious reason for this shift,” he said.
“Maybe when people hear this and hit the market with dollars, there would be an adjustment.”
The British pound was trading at N740 across the same markets.
The Central Bank of Nigeria said in July that it would no longer sell forex to BDC traders.
The apex bank has said repeatedly that the parallel market is not a true reflection of the naira.
Deposit money banks were commissioned by the CBN in August to cover for the expected demand following its policy change.
The Economic and Financial Crimes Commission (EFCC) is working with the CBN to rein in banks who are found selling forex for unauthorised reasons. (With extensive additional report by TheCable)
Stay ahead with the latest updates! Join The ConclaveNG on WhatsApp and Telegram for real-time news alerts, breaking stories, and exclusive content delivered straight to your phone. Don’t miss a headline — subscribe now!
