Naira Crashes To A New Record Low Against Dollar As CBN Prepares To Eliminate Parallel Market

The naira on Wednesday crashed to a record-breaking low of N492 to the United Stated dollar on the parallel market as against the N490 it recorded on Tuesday as demand for the dollars outstrips forex liquidity.
While the Pound and the Euro closed at N605 and N505 respectively.

At the Bureau De Change segment, the naira traded at CBN stipulated rate of N399 to a dollar, both the Pound and the Euro closed at N604 and 510 respectively.
The official interbank market remained stable, with the naira exchanging at N305.25 to a dollar.

This is coming at a time that the Apex Bank is considering to eliminate the foreign exchange black market in Africa’s biggest economy.
The naira is trading on the parallel market some 40 per cent lower than the official rate against the dollar as low global crude prices have dried up vital oil revenues and pushed Africa’s largest economy into recession.

As a result of this, the Minister of Finance, Kemi Adeosun, said the CBN has been mandated to scrap the damaging market.
The Apex Bank “has been directed to do this and CBN has promised to do something by putting a system in place to eliminate the black market because it’s damaging the economy”, she told a conference.
The President of Bureau De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe has hailed the newly proposed abolition of the parallel market.

“The scrapping of multiple markets outside the purview of the CBN will be a welcome development.
“The existence of multiple rates is highly unacceptable,’’ Gwadabe said.