Tuesday, 21 February 2017

Naira On A Free Fall : 520 To A Dollar


Naira which had closed at 516/dollar on Friday is now 520/dollar  as at Monday, in the parallel market. Experts blame the fall on high demand for dollars.

The Central Bank Of Nigeria, CBN,  recently, decided to start selling dollars to retail currency traders through the commercial banks. According to Reuters, The CBN   has decided to sell $1m weekly to each of the 21 commercial banks in Nigeria at the rate of N375 to clear a backlog of demand for retail users.
Due to the shortage of dollars, Licensed Bureaux de Change operators, who the retail users buy from are  sourcing from private sources and end up selling at higher rates, there by strengthening the black market.

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