Naira value falls as dollar sells above N400

The naira is facing one of its toughest times since 2017, the last time it was devalued. The naira was yesterday exchanging at N414 to dollar in the parallel market during the morning hours but recovered later in the evening to N370 to dollar.
However, the local currency remained firm at the official market, closing at N306.95 to dollar and closed at N366.75 to a dollar on the Investors and Exporters’ (I&E) Forex window.

President, Association of Bureaux De Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, who confirmed the naira rates, said currency speculators and investors converting their naira asset to dollars are to blame.
According to Gwadade, many Nigerians and foreign investors, sensing the possible decline in the value of the naira, are moving their naira assets to dollars, to avoid erosion of value.
He said speculators had in their rush to accumulate  dollars, pushed the local currency to new low at N414 to dollar before it made a surprise recovery at N370 to dollar at the parallel market.

He confirmed that the naira decline at the parallel market was linked to two major immediate factors: speculators buying dollars with hope of selling at higher margins and people coverting their naira to dollar assets.
The CBN, however, said the fundamentals in the market do not support devaluation of the naira.

“We wish to note with displeasure, the rumours and speculative activities of unscrupulous players in the foreign exchange market, borne out of the impression that the CBN is on the verge of devaluing the Naira, and triggering panic in the forex  market. These rumours are false, unwarranted and calculated to serve their dubious and selfish ends,” the apex bank said in a stamens.
“The apex bank said it has begun a robust and coordinated investigation in collaboration with the Nigerian Financial Intelligence Unit (NFIU) and related agencies to uncover the unscrupulous persons and forex  dealers who are creating this panic, and the full weight of our rules and regulations will be meted out to them, including, but not limited to, being charged for economic sabotage”

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