Thursday, February 25, 2016

Naira ends 2day rally, depreciates to N355/$


The improving fortune of the naira in the parallel market was reversed yesterday as the currency depreciated to N355 per dollar in the market. Citynewsng investigation reveals that the parallel
market exchange rate rose sharply from N305 per dollar on Tuesday to close in Lagos and Abuja at N355 per dollar, implying depreciation of N50 per dollar. This was in sharp contrast to the N70 appreciation recorded from Monday to Tuesday, when the parallel market exchange rate dropped from N375 per dollar to N305. Bureaux De Change operators however express dismay over the sudden depreciation of the naira. President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe attributed the development to speculation and hoarding. He said there appears to be a conspiracy to hoard dollars in order to halt the appreciation. An Abuja BDC operator who does not want his name mentioned said the people are not willing to sell dollars and this worsened the demand-supply dynamics. “It the same factor of fear and rumour that occasioned the appreciation that are also behind the depreciation”, he said.

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