As the nation continues to experience a shortage of American money in the foreign exchange (FX) market, the Nigerian Naira has officially surpassed the N700 to Dollar barrier.
According to information gathered from foreign exchange brokers in several areas of Lagos, the country’s economic centre, the Naira was exchanged for the dollar on Wednesday at a rate of N705 to $1, and holders were able to purchase the hard currency for between N697 and N700.
The exchange rate for the local currency was N705 to $1 when our reporter visited the Yaba neighbourhood of Lagos State today at noon.
The local currency was traded for the US dollar for N703/$1 in Ikeja and at N700/$1 in the Egbeda district of the city at the Olugbede Model Market.
The Naira to the Dollar exchange rate on the black market yesterday was N671/$1, but in less than a day, the value has decreased by N34, or 5.07 per cent.
According to Business Post, some investors are in a panic and are selling their Naira investments for dollars as a result of recent remarks made by Mr Godwin Emefiele, governor of the Central Bank of Nigeria (CBN).
The central bank governor’s last-week “triggering of the panic button” is what we are currently experiencing, said Mr Ademola Bankole, a financial expert based in Lagos, to this writer.
Another financial analyst, Mr Chukwu Edozie, said, [/keypoints] [quotation name=’Chukwu Edozie’] Investors are only trying to play safe as the electioneering is getting closer and inflation could erode return on investments (RoIs) in Naira.[/quotation]