Naira crashes to 1,030/$ as speculators react

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Gauging the forex market
Gauging the forex market

The naira crashed against the dollar on Monday, falling to 1, 030/$ on the average in the parallel market, losing the momentum it gathered last week.

This represents a N80 loss or a 8.42 per cent decline of the local currency compared to the N950 it closed the week at last Friday.

This is also the first time the naira is falling since the Central Bank of Nigeria began to clear some of its FX backlog last week.

Currency traders, also known as Bureaux De Change operators, said that the naira was trading at between N990 to N1,030/$.

A trader who gave his name as Awolu told reporters, “The dollar is N995 if you want to sell. If you want to buy from me, it is N1,020.” Another trader, Kadri, added, “The dollar is N960 if you want to sell. If you want to buy, it is N990.”

According to the President of the Association of Bureaux De Change Operators of Nigeria, Aminu Gwadabe, the dollar has gained against the naira because people who had bought it at a higher price are resisting its fall following the Central Bank of Nigeria’s move last week.

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