Rising dollar demand pressures naira, crashed by 7.94%
A rising demand for dollar at the international market has triggered a substantial fall in the value of the Naira against the U S Dollar and other currencies on the over-the –counter spot market.
The Naira exchange rate against the Dollar sky-rocked on Monday to Four Hundred and Eleven Naira, Twenty-Five Kobo from Three Hundred and Eighty Naira it stood on Friday. This Tuesday, the rate rose to Four Hundred and Thirteen Naira Ten Kobo. This was a Seven Point Nine-Four percent rise from Friday to Tuesday.
The Naira official market rate per Dollar, backed by the central bank has been stuck at Three Hundred and Eighty-One Naira for almost a year, after two devaluations last year.
Other currencies that rose against the Naira include British Pound, Euro, Australian Dollar, Canadian Dollar, Ghanaian Cedi, Chinese Yuan, SWZZ Franc, Saudi Riyal among others.
Naira per British Pound rose to Five Hundred and Eighty-Six Naira Eighty-One Kobo from Five Hundred and Seventy-Nine Naira Eighty-Kobo it stood on Monday.
Similarly, the Euro strengthened against the Naira by Seven Naira, One Kobo between Monday and Tuesday. It rose from Four Hundred and Ninety-Nine Naira, Seventy-Three Kobo to Five Hundred and Four Naira, Sixty-Three Kobo. At the black market, the rate rose by Zero Point One-Seven percent rising to Five Hundred and Eighty-Two Naira from Five Hundred and Eighty-One Naira at the previous day.
Naira per Canadian Dollar spotted at Three Hundred and Twenty-Two Naira, Twenty-Two Kobo which was a rise from Three Hundred and Eighteen Naira, Ninety-Four Kobo while naira against the Chinese Yuan went up to Sixty-Four Naira, Thirty-Three Kobo from Sixty-Three Naira Eighty-Three Kobo.
Naira also depreciated again the Ghanaian Cedi, as the rate went up to Seventy-One Naira Sixty-Six Kobo from Seventy-One Naira, Forty-One Kobo previously traded. It was quoted at Ninety-Four Naira, a rise from Ninety Naira on Monday at the black market.
The Central Bank has been trying to unify the rates and boost the dollar supply through direct interventions. It extended ban incentive offer last week to recipients of dollar remittance.
