It foreign exchange market at the parallel market isn’t palatable for businesses who can not access forex through financial institutions.
At the opening of trading Wednesday it was N532 against one US dollar, but a few minutes later it dropped again to an all-time low, trading at N535 to $1, that’s the lowest value of naira ever.
In our report of September 9, 2021, we reported that it was no longer at ease with the Naira. Our thought was that was the lowest value, but the market forces later in the day proved us wrong.
The naira has been falling since President Muhammadu Buhari assumed office in 2015, but the recent fall should be astronomically embarrassing to the government that promised to raise the value of naira during the electioneering campaign.
The September fall of the naira is a fallout of the CBN decision to remove the Bureau De Change operators from the forex market.
Before the CBN’s new policy, each of the 5,500 operators was receiving $20,000 from the apex bank, but Godwin Emefiele stopped the supply, saying they’re saboteurs to the fx market.
Since then, naira has been falling steadily due to the lingering scarcity of foreign exchange despite the rise in forex reserves.
US Dollar to Naira Since January:
The year 2021 started with N470/$1 and ended January with N477/$1, it began February with N480/$1.
Fast forward, by July, one Us dollar was exchanged for N505 and rose to N525, two days after July 27 sanction against BDC operators by the CBN.
It made a slight gain on August 4 as $1 went for N506, it went back to the free fall on August 10 at N510 to $1; it continued the fall as of the time of filing this report.
The same naira fall extends to other currencies in the fx market.
On Tuesday, the CBN said it’s more worried about FX supply than naira valuation as it focuses its attention on meeting the demands of Nigerians who need FX for PTA, BTA, and other needs.