Naira Slumps To 3-Year Low Against Dollar

The Naira has further responded to presures from  poor crude  oil prices and depleted reserves to  trade  at N460 against  the dollar at the parallel market, a rate which represents a three- year low since the first quarter of 2017.

The Naira had earlier maintained a stable rate of N450  against the dollar between 24 and 27 April 2020 in the parallel market before falling again on Tuesday.

During the Tuesday trading session, the naira fell by N10 to trade at N460, according to AbokiFX which collates rates from traders in Lagos, representing the worst slide since the  second quarter of 2017.

The country’s crude oil exports constitute 90% of the foreign exchange earnings and poor oil revenue, coupled with the lockdown, has put the naira under pressure against the dollar.

At the Investors’ and Exporters’ FX Window the Naira closed at N386.25 from N384.54 per dollar.

CBN had suspended foreign exchange intervention to money changers until further notice, citing that it would help curtail the spread of COVID-19.

 Businesses and other stakehiolders are hoarding the dollar,”thinking when things become normal they’ll gain,” the CEO of Forward Marketing Communication Bureau De Change, Abubakar Mohammed, was qquoted as saying.

At the Investors’ and  Exporters’ FX Window the Naira slumped to N386.25 per dollar after opening at N384.54.