The Nigerian currency has reportedly crashed against the dollar, both officially and on the parallel market.
Sahara
Reporters is reporting that this is as a result of the devaluation of
the Nigerian currency following the removal of fuel subsidy. On Friday,
May 13, reports say the naira now sells for N290 and N360 at the Central
Bank of Nigeria (CBN) and black market respectively. Sahara Reporters’s
post reads:
“FLASH: Nigeria
buckles, devalues its national currency. Naira secretly devalued to
N290 to a $1. Now sells at N360 in the black market.”
As at the time
of filing this report, our correspondent tried to reach out to the
bureau de change operators for the true state of things on the black
market, but
they did not pick up their calls.
they did not pick up their calls.
During an
investors’ forum in Lagos on Wednesday, May 11, Nigeria’s vice
president, Professor Yemi Osinbajo informed that President Muhammadu
Buhari has consistently affirmed that the naira would not be devalued,
despite some pressures from within and outside.
Nigeria’s
number two citizen explained during the meeting, that the more flexible
foreign exchange policy would “be able to attract more capital into the
system and ease business.
“We believe
there must be some substantial re-evaluation of the foreign exchange
policy, especially with a view to increasing foreign exchange supply,
encouraging capital importation and also being able to allow free flow
of remittances…we expect that with a more flexible policy, we will be
able to attract more capital into the system and ease business.”
Reuters
reports, however, that while the naira remains at N197 against the
dollar on the interchange market, it is now trades at N345/dollar on the
parallel market. Aminu Gwadabe, head of BDC operators, stated: “More
speculators are taking a position in the market, causing dollar scarcity
and fall in the value of the local currency.” 
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