LAGOS — The Naira depreciates against the dollar in the parallel market, in response to intense scarcity of dollar in the market.
Vanguard survey of parallel market exchange rate in major cities shows that the Naira depreciated to N303 per dollar in Lagos from N299 last week, while in Abuja and Kano the Naira depreciated to N304 per dollar from N299 last week.
Bureaux de Change operators attributed the sharp depreciation to increasing scarcity of dollars in the market.
“There is no dollar, that is why the rate is going up,” said Mr. Harisson Owoh, Chief Executive Officer, H.J Trust BDC.
An Abuja-based BDC operator, who spoke on condition of anonymity, told Vanguard: “People are looking for dollars, while nobody is willing to sell. There is also the expectation that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria will devalue the Naira but we know they will not.”
President, Association of Bureaux de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe, also confirmed to Vanguard that there is scarcity of dollars in the market, noting:“There is scarcity of dollars. Where will the dollars come from?”
He also confirmed to Vanguard that the proposed meeting between the Executive Council of the Association and the CBN did not hold last week. He said the meeting has been rescheduled to this week.
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