The economic team of this administration seems to be losing grip to stem the downward spiral of the naira as the Nigerian currency fell further to 363 against the dollar at the parallel market on Thursday, as the scarcity of foreign exchange continued to weigh on the value of the local currency at the interbank and parallel markets.
The naira had closed at 360 to the dollar at the parallel market on Wednesday.
The local currency also dropped against the greenback at the interbank official market to 284 per dollar on Thursday. The naira has fallen consistently at the interbank market this week, a development that is reflected in the volatility it has recorded at the parallel market.
The currency depreciated at the interbank market to 282.5, 283.25, 283.75 against the dollar between Monday and Thursday.
“It is a supply and demand market. A lot of demand is being pushed to the parallel market due to the shortage at the interbank market; it appears that the interbank market is being rigged,” the National President, Association of Bureau De Change Operators, Aminu Gwadabe, said, adding, “There is the need to really douse the tension.”
Currency analysts said they believed the spike would continue next week unless the CBN took action to address the supply gap at the interbank market. While commending the CBN flexible exchange policy, many believed N280/dollar level where it started was not a true reflection of the value of the naira.
