The Nigerian economy is in agony as Naira slumps to N400 per dollars, the worst in history. Naira currency continues to slide on the parallel market as the government make effort to control the sales of foreign currency in Nigeria. The current state of the Naira can better be described as a free-fall mode against the dollar and other major currencies, having lost 26 per cent of its value in less than two weeks.
The Naira had on Wednesday exchanged for one dollar at 372 on the streets of Lagos, Abuja, Port Harcourt and other major cities. And if this latest trend continues, Naira may exchange for N500 before next month end.
The reason for the current assumption being that the local currency, which closed at 310 against the greenback last Monday, has been falling consistently and significantly in the past 11 days and may continue in that pattern for the next few months until government stabilizes it, either by devaluation or other means.
Forex dealers and financial experts linked the persistent fall of the naira to panic buying of the dollar and other major hard currencies by importers, individuals and businessmen.
Bureaux De Change operators in Marina, Ikeja and Apapa and Abuja told our correspondent on Thursday that there were no signs yet that the rising demand for forex especially dollars will cease soon.
Nigerian Policy makers are under pressure to devalue the naira after the recent plunge in oil, which accounts for about 70 percent of government revenue, contributed to the 14 percent slide in Nigeria’s reserves in 2015 to $29.6 billion. However, The CNB official exchange rate has been kept at 198-199 per dollar since March after the central bank restricted the ability of lenders to buy foreign currency.