The naira continued to fall against the dollar on Tuesday, dropping to N1,080/$ in the parallel market.
This represents a 4.85% decrease from the N1, 030/$ it traded on Monday.
Additionally, it is the second day that the naira is losing ground after experiencing a surge at the end of last week following reports that the Central Bank of Nigeria had started to reduce part of its foreign exchange backlogs.
The naira has dropped 13.68 percent versus the dollar since Friday’s closing trade at N950/$. This means that it has lost N130 of its worth. Bureaux De Change Operators reported that on Tuesday, it traded between N1,060/$ and N1,095/$.
One of the operators, Kadri, said “Dollar is N1,040 if you want to sell. It costs N1,080 if you wish to buy.
Another person, Awolu, stated, “Dollar is N1,095 if you want to buy. If I want to buy from you, it is N1,070” while Muhammed added, “Dollar is N1,050 if you want to sell. It is N1,060 if you want to buy it.”
According to information on FMDQ OTC Securities Exchange, the naira lost 7.53 percent of its value on the official market on Tuesday, falling to N869.91/$ from N809.02/$ on Monday.
The president of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, attributed the decline to speculators’ actions on Monday.
He added that speculators are constantly looking at aspects of sustainability. They start to respond as soon as they realize the injection is not continuous. They start to respond. We are seeing the market’s response to it. There is opposition as well. Some customers paid more, which is not in their best interests. Individuals are unwilling to sustain additional losses.
The administration has, however, issued a warning to Nigerians who are hoarding foreign currency to cease as new policies may surprise them. This was revealed at the “Cowries to Cash” lecture and lunch on Tuesday in Abuja by the Special Advisor to the President on Economic Matters, Dr. Tope Fasua.
He revealed that the administration of President Ahmed Bola Tinubu is developing measures to strengthen the Naira. Fasua stated that the government’s recent actions towards the foreign exchange market are anticipated to continue.
“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,” he said, speaking at the event on behalf of Vice President Kashim Shettima.