Naira now exchanges N1,000 for one  dollar

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The Nigerian currency was as at the parallel market, yesterday, exchanged for N1,000 to dollar. This depreciation has been attributed to the activities of forex speculators as well as the sustained scarcity of dollar at both official and parallel markets.

The naira yesterday depreciated to N1,000 to dollar at the parallel market. The sustained scarcity of dollar at both official and parallel markets and activities of forex speculators  were to blame.

Former Registrar, Chartered Institute of Bankers of Nigeria (CIBN), Dr. Uju Ogubunka, said Nigeria’s trade balance has been weakened by its inability to produce and earn forex.

To firm up the naira, he said Nigeria must find new ways to boost production to earn more dollars and boost foreign reserves.  Ogubunka, who is also the President, Bank Customers Association of Nigeria, said aside boosting production, there is need to tackle insecurity to allow farmers go to their farms.

He said such effort will help increase crop yields and bring more dollar earnings for the economy that will, firm up the local currency.

According to him, insecurity and the political uncertainty are delaying several corporate investment decisions that would have brought in more dollars to the economy.

President, Association of Bureaux De Change Operators of Nigeria (ABCON), Dr. Aminu Gwadabe, said there was need to encourage market participants to source forex from independent windows to boost liquidity.

He called for enabling environment and fair treatment for all the players to achieve exchange rate stability.

He advised the Federal Government should enhance financial intelligence by tracking people with proceeds of corruption to sanitize the market.

Gwadabe said many of the people with proceeds from corruption are the ones putting pressure on the forex market through their manipulative actions. “The naira is depreciating not by forces of demand and supply, but by the collective action and impact of the people with illicit funds,” he said.

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