Friday, 30 September 2016

Naira crashes to N480 To $1 at parallel market [MUST READ]

Updated 30 September, 2016
The Naira crashed to N480/$1 at parallel market on Thursday, September 29, from about N460 exchange rate attained on Wednesday, September 28. 

This is the worst rate since the introduction of the floating foreign exchange policy by the Central Bank of Nigeria (CBN) in June. 

According to economists, the massive plummeting of the Naira was as a result of the anticipated return of transfer of dollars abroad by Travelex through the Bureau De change (BDCs). 

The arrangement, introduced by the CBN August last year, to facilitate the transfer of money outside the country for payment of students’ school fees, has faced serious hiccups with acute shortage of dollar. 

“There is no bank dispensing dollars to the BDCs for that purpose. 

The BDCs’ accounts were debited by some banks since Monday and they are not able to pay any of the BDCs so far debited. This is really sending a bad signal in the market,” a BDC operator said. 

We recall that the Association of Bureau De Change Operators of Nigeria had predicted that the Naira would recover before the end of the week due to the introduction of Travelex, a licensed forex dealer. 
According to Alhaji Aminu Gwadabe, president of ABCON, the forex distribution would be efficient and uniform across ABCON members, unlike what was obtainable in the past. 

Gwandabe says the Travelex has the technology to sell forex to about 1,000 BDCs in a couple of hours, which is a major advantage. 

But sadly, supply of dollar has remained a huge problem in the foreign exchange market, as more Nigerians continue to press for dollar to assist importation of raw materials and payment of school fees in foreign schools. 

More so, the plummeting of the naira contradicts the statement made by Kemi Adeosun, minister of Finance, that Nigeria is almost gone out of recession, as things don’t look to be getting better. 

According to Adeosun, Nigeria was already getting out of recession as the federal government had taken steps that were in the best interest of the citizens. 

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