Naira plummets to N452/$ as demands outweigh supply

The naira slipped further against the US dollar on Tuesday, slipping from N445 to which it traded on Monday at the parallel market to N452 to a dollar yesterday.

While on the interbank market, the Naira depreciated to N312 against the dollar from the N308 it was traded on Monday.

Experts have said the current rate is not a true reflection of the Naira value, and attributed the development to the activities of speculators. Some traders have expressed optimism that once Travelex finalize its arrangement to sell directly to Bureau de Change Operators (BDCs), the Naira will rebound.

While others have said the continuous ban of the importers of 41 items contributed to the current situation as they are also sourcing for the dollar to import for the normal end of year sales.

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The President of the Association of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe said it will take Travelex few days to process biometric registration and funding of BDCs accounts.

Harrison Owoh, a bureau de change operator expressed his delight at the Travelex move by the central bank and called on other bureau de change operators to key into the new Travelex arrangement by registering on Travel biometrics.

A foreign exchange research analyst at Investors King Ltd., Samed Olukoya said “Normally, the announcement of Travelex arrival to the Bureau de Change segment would have halted further decline of the Naira, but with the present situation the central bank would have to do more.”