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CBN governor, Godwin Emefiele

Naira May Hit N500/Dollar Next Week

A report by Reuters indicates that the naira may hit the N500 mark to the dollar at the parallel market.

The na1ra was trading around N495 to the dollar on the black market on Thursday, December 22 compared to 485 per dollar last week due to dollar shortages.

The naira was quoted at 310.5 to the dollar on the official interbank window on that same day by commercial traders.

A trader quoted in the report said: “There is an acute shortage of dollars in the market because of supply being slashed by half to Bureau de Change operators from international money transfer agents, pushing the naira down.”

The Bureau de Chang (BDC) operators are now getting $8,000 each every week from Travelex against the usual $15,000 each per week.

The naira had tumbled against the dollar to 490 on Monday 18, December from 487 last Friday, December 15 as acute shortage of the Dollar continued to batter the Nigerian economy and the country’s foreign exchange markets.

Before last Friday, the na1ra had consecutively closed flat at 485 for 4 days in the previous week.

The severe shortage of the dollar has put the naira under persistent pressure at both the official and parallel forex markets.

Meanwhile, economic and financial experts have predicted that the naira will weaken further against the dollar as Christmas celebrations kicks off.

They also argued that the crackdown on the black market forex traders and the persistent scarcity of the dollar would make further weakening of the local currency inevitable.

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