Naira slides further to N1,080/ $1

The Naira continues its wild decline versus the US dollar, falling to N1,080/$ on the black market.

This represents a 4.85% decrease from the N1, 030/$ it traded on Monday.

In addition, the naira is weakening on day two after a surge at the end of last week following reports that the Central Bank of Nigeria was starting to reduce its foreign exchange reserves.

With Friday’s closing price of N950/$, the naira lost N130 of its value versus the dollar, a 13.68 percent depreciation. Operators at Bureaux De Change report that on Tuesday, it traded between N1,060/$ and N1,095/$.

One of the operators named Kadri told The PUNCH, “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.”

The presidency has issued a warning to Nigerians who are hoarding foreign currency, stating that they may be shocked by new regulations the government is implementing. This was revealed at the “Cowries to Cash” lecture and lunch on Tuesday in Abuja by Dr. Tope Fasua, Special Advisor to the President on Economic Matters.

He revealed that the administration of President Ahmed Bola Tinubu is developing measures to support the Naira. Fasua states that the government’s recent actions toward the foreign exchange market are anticipated 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.”