Naira Plunges: The naira continued to decline on the parallel market as it slipped to N445 to the United States dollar on Monday – lower than the N440 to the dollar it closed on Friday as pressure and activities of speculators continued to hurt the nation’s currency.
Also, on the interbank FX market, the local currency depreciated marginally to N308 to the dollar, as against the N307.79 to the dollar it closed last Friday.
Reacting to the development, the President of the Association of Bureau De Change Operators of Nigeria (ABCON), Mr. Aminu Gwadabe, maintained that the current rate of the naira on the parallel market was not a true reflection of the value of the currency.
Gwadabe further attributed the situation to the activities of speculators, adding that the speculators are taking advantage of the poor implementation of the Central Bank of Nigeria (CBN) policy requiring banks to sell dollars to bureau de change (BDC) operators.
Some currency traders also blamed the decline on the naira on the demand from parents buying dollars to pay school fees abroad was exerting pressure on the FX market.