Investors, Importers Fight For Dollar, As Naira Falls To N454 To A Dollar

The surge in the demand for dollar by foreign investors and businesses paying with the dollar has led Naira to an unstable rate in the parallel market, as dollar trading at N454 to $1.

Brandnewsday learned that at the Naira weekend, Naira crashes further at the black market as a result of scarcity distribution of dollar. This is assumed to be the most rarity moment of the dollar since 2017.

The Naira has struggled today at the parallel market, also referred to as the ‘Black Market’ as it trades at N454 to $1.

Consequently, the scarcity of dollar has been traced to the increase in demand by foreign investors, business owners and importers whose only mode of payment is through the dollar. The shortage of dollars at the parrel market was coming shortly after the two weeks easing of the lockdown by the Federal Government in the most affected states– Abuja, Lagos, Ogun.

Read: Naira Appreciates To N386.94 Against US Dollar

In contrast to the shortage of dollar in the black market, the naira is noticed to have been soaring on the official and the currency spot markets. As stated by some bank currency traders, buyers resist weakening of the naira since the majority of dollar supply is from the Central Bank of Nigeria, CBN.

According to the CBN Governor, Godwin Emefiele, in a statement issued on 10th of May, 2020, “Investors interested in repatriating their funds from the country are guaranteed to get their money, notwithstanding the drop in the revenue from crude oil.”

Recall that the CBN kicked with the sales of forex to commercial banks on April 28, 2020, to aid the importers and individuals with dollar expenses abroad ramp up economic activity following a phased easing of the coronavirus lockdown.

The CBN bank has insisted that it has enough dollars to meet the demand for further circulation.

Read: Global Oil Price Surges, As Nigeria’s Bonny Light Crude Jumps To 22.7%