Naira Plunges To N1,520.40/$1 On Official Market

The naira extended its weakness on the official market on Tuesday, as it closed at N1,520.40/$1 compared to N1,478.11 per dollar the previous day, data from FMDQ shows.

Similarly, the local currency fell to N1,520 per dollar on the parallel market on Tuesday, from N1,470 per dollar on Monday, currency traders said.

After rebounding by over 40% in the span of six weeks to this year’s high of N1,090/$ at the parallel market on April 18th, the naira has maintained a downward trend on the forex markets in recent weeks, a development, analysts attribute to increased dollar demand amid low domestic greenback liquidity.

Analysts also believe that the naira’s renewed weakness is occasioned by intensified speculation, hoarding, as well as late disbursement of FX to Bureaux De Change (BDC) operators by the Central Bank of Nigeria (CBN).

According to BDC operators, it usually takes three to four weeks after payment before the apex bank disburses dollars to them.

They said the situation has led to some BDCs withdrawing from the regulator’s dollar sales programme.

Last Friday, citing what it described as the recent “loss of momentum ” in foreign inflows as well as inflows from local sources, Africa’s biggest lender, Standard Bank, said in a report that it expects a N1219.32 per dollar exchange rate by December 24.