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Naira takes a plunge, hits N530 against dollar

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Moboluwade Tobiloba

 

The value of the naira has taken another hit as it sinks to a lower level against the US dollars, the pound sterling and euro, amidst the scarcity of foreign exchange in Nigeria.

The naira, which stood at 526/$1 on Tuesday, dropped to 528/$1 on Wednesday and hit 530/$1 on Thursday at the parallel market.

The local currency also hit a new low with the pound sterling from N717/£1 on Wednesday to N720/£1 on Thursday while the euro went from N616 to N620.

According to Nairametrics, the naira fell to an all-time low against the US dollars in the black market due to increased demand for foreign exchange by importers who cannot access forex at the official window.

Though the cause of the constant drop in the currency is yet to fully reviewed, experts say one of the possible reasons could be the CBN’s decision to stop foreign exchange sales to Bureaux de Change.

 

 

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