Nigeria’s currency falls to its lowest level in 43 years

Nigeria’s currency yesterday fell to a 43-year low of 305 to a dollar as the the foreign currency’s scarcity worsened following the decision of the central bank to stop the sale of foreign exchange to Bureaux de Change (BDCs).

The naira fell from an average of 287 per dollar on Tuesday to an average of N305 per dollar on the parallel market.

Since the Central Bank of Nigeria (CBN) stopped weekly dollar sales to BDCs on Monday, the Naira has started taking a plunge against the dollar.

Nigerian newspaper Vanguard quoted Mr. Harrison Owoh, the Chief Executive Officer of H.J Trust, a Nigerian BDC, to have said none of the rates in the parallel market can be quoted as the real value of the naira for now because of the intermittent change since the policy change by the CBN.

However, analysts expect the naira to stabilize against the dollar next week after the market would have absorbed the impact of the new CBN policy.

Nigeria’s central bank said it stopped forex services to BDCs due to the country’s depleting forex reserves which now stands at around $28 billion.