Shocking: Naira crashes to all time low, trades for N409/dollar
– BDC operators believe the ban on transaction of forex has put pressure on the black market – The crash may continue until the ban on the nine commercial banks is reversed by the CBN For the first time ever, Nigeria’s currency crashed to N409/dollar on the black market, a situation which puts forex dealers […]
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– BDC operators believe the ban on transaction of forex has put pressure on the black market
– The crash may continue until the ban on the nine commercial banks is reversed by the CBN
For the first time ever, Nigeria’s currency crashed to N409/dollar on the black market, a situation which puts forex dealers in a tight corner.
This fall of the naira is coming shortly after the suspension of some banks from the foreign exchange market, thereby making the American legal tender more difficult to get.
On Tuesday, August 23, CBN barred nine commercial banks from all foreign exchange transactions and operations.
The banks were barred for hiding over $2.12 billion belonging to the Nigerian National Petroleum Corporation (NNPC) and failed to remit the funds into the Treasury Single Account.
A top Central Bank source confirmed that President Muhammadu Buhari had been briefed on the matter and the sanctions to be imposed on the defaulting banks, Channels Television reports.
And according to Reuters, Aminu Gwadabe, president of the bureau de change association in Nigeria, said: “The suspension of some banks from transaction in the forex market has really increased pressure on the market.”
The apex bank said all the banks will remain barred from foreign exchange operations until they fully remit the NNPC funds into government coffers via the Treasury Single Account (TSA).
As at Wednesday, August 24, the Nigerian currency was trading at N397/$1 on the black market having retained its value from Tuesday, August 23.
According to currency traders and economists, the local currency’s poor performance at the parallel market has been triggered by increased scarcity of the greenback.
And as things stand now, the Nigerian currency is not likely to garner any strength, even as the ban on the nine commercial bank by the CBN remains.
The post Shocking: Naira crashes to all time low, trades for N409/dollar appeared first on Nigeria News today & Breaking news | Read Naij.com 24/7.