Dollar hits N271 as Naira continues to plunge

Naira exchange

Naira-notes-2

The naira which had soared to an all time high of over N280 last week had by Sunday night garnered strength to around N260.

It had begun a descent on Monday, December 21, selling at N271 by the close of trading.

The acting President of Association of Bureau de Change Operators of Nigeria Aminu Gwadabe explained that “people were thinking that last week would have been the week that the CBN would close their window, and up till now they have not announced on their website or informed us officially that the forex window have been closed. Because of the likelihood that CBN will intervene this week people started selling their dollars.

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“Banks were recalling their credit from customers because of that we witnessed a crunch in the market last week and the banks were not willing to fund speculative activities,” Gwadabe stated.

Although the CBN has not officially announced that it would stop selling coring exchange to BDCs, there are indications that it would rein in its dollar sales as the foreign reserves of the country continue to depreciate. As at last Friday, the reserves of the country had dropped to $29.419 billion.

Bizwatch

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