Why Naira depreciates to N304 per dollar

The Naira depreciated against the dollar by N4 in the parallel market, yesterday, in response to intense scarcity of dollar in the market.

According to survey, The parallel market exchange rate in major cities shows that the Naira depreciated to N303 per dollar in Lagos from N299 last week, while in Abuja and Kano the Naira depreciated to N304 per dollar from N299 last week.

Bureaux de Change operators attributed the sharp depreciation to increasing scarcity of dollars in the market.

“There is no dollar, that is why the rate is going up,” said Mr. Harisson Owoh, Chief Executive Officer, H.J Trust BDC.

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An Abuja-based BDC operator, who spoke on condition of anonymity, told Newsmen: “People are looking for dollars, while nobody is willing to sell. There is also the expectation that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria will devalue the Naira but we know they will not.”

President, Association of Bureaux de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, also confirmed to Newsmen that there is scarcity of dollars in the market, noting:“There is scarcity of dollars. Where will the dollars come from?” He also confirmed to Newsmen that the proposed meeting between the Executive Council of the Association and the CBN did not hold last week. He said the meeting has been rescheduled to this week.

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16 Comments

  1. We don’t need selfish people as leaders. Buhari doesn’t care how people are being affected as long as his salaries, allowances and loots keep increasing

  2. Most of the raw materials needed for companies to run are imported and bought in dollars. No raw materials, no salary for a lot if people. Some people do importation of goods and services and the currency involved is dollars, their employees would be sacked if there is no dollar available to import or run their businesses. The use of dollars is not only for looting by politicians; hardworking job-creating Nigerians use this currency to make a living.

  3. Hafeez pls show respect to elders / leaders. Buhari is a patriotic leader who loves Nigeria and Nigerians. Only people who have skeletons in their cupboards despise him. Like him or not, he will lead Nigeria out of the woods. Nigeria will be great. If you don’t want the country to grow, you can relocate.

  4. @Sunday, the western world no want make Africa unite, because if that one happen, we go surpass them drastically with all the natural resources wey Africa get. them like am as African they struggle, and one of the reason wey them delete Gaddafi.. but one thing wey them dey fail to know be say no body fit stop the sun or light from shinning, therefore, we go rise someday soon.

  5. Why should we depend on dollar
    In Southafrica, Ghana and other African country, they don’t depend on dollar
    if we don’t depend on dollar, no one will demand for it
    when no one demand for it, price will drop
    demand and supply
    Nigerian stop making life difficult for ur selfs

  6. @ Abe
    For those that import raw material, you will apply to CBN through your bank and it will be made available cbn rate.
    how does company like dangote, toyota, mtn, glo, and other big manufacturing company import their equipment and raw material? through CBN
    with this there will be check on importation on goods that can be made in the country
    some company ar coming into the country to setup their company now, and its a good thing

  7. @yemotee that’s why there is what is called “ease of doing business within a country”. The hard currency may be made available to the likes of Dangote and co., but it is not available to the average man who does foreign trade. It takes weeks, sometimes months for a bank to even approve dollars for the payment of international school fees which used to take a maximum of 72 hours.
    Bidding for dollars by commercial banks (so I heard) has been reduced from 3 times a week to just once a week, so the banks have very limited supply of dollars.
    It is because of scarcity from banks that has allowed the Bureau De Change business thrive so well, hence they dictate the price based on who is willing to pay highest.

  8. Until we can restart our primary sectors of the economy and improve on the partially existing industrial sector, we are going to continue to depend on imports. It’s unfair to stop people’s source of income when you haven’t provided an alternative.

  9. @ Abe
    that is true
    It’s unfair to stop people’s source of income when you haven’t provided an alternative.
    (alternative)

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