Naira Weakens To Worst Level In 2020, Trades N484 Per Dollar – The Whistler Nigeria

Weaker naira emerge on Friday as unofficial market rate jump to N484 to a dollar, the worst since since  January this year.

The naira opened the month at N463 on November 2, but the the nation’s currency had weakened further to N484, a slump by 4.54 per cent.

“What we are selling out is N484,” Ali Muhammed a Lagos based Bureau de Change operator confirmed to THE WHISTLER on Friday. 

Across Nigeria’s economic hub Lagos, the demand for dollar ahead of December imports have heightened, but the dollar have remained scarce.

“We are not certain if the rates will fall soon,” Muhammed said, adding “We do not know how the weekend will play out, because usually Fridays, rates fall.”

“This is because people are looking for dollar to buy,” he added.

In the Importer and Exporters Window, the naira traded at N385.50 to the dollar on Friday evening in Lagos, with the spot rate trading at N383.

The Central Bank of Nigeria resumed rationing of dollar following the supply shortfall against the increasing demand since activities resumed.

The apex bank had in August issued a circular disallowing third parties or middlemen from transacting in forex deals in its official SMIS window.

The regulator had said, “Authorized Dealers are herby directed to desist from opening of Form M whose payment are routed through a buying company/agent or any other third parties.”

CBN said the move would, “ensure prudent use of our foreign exchange resources and eliminate incidences of over invoicing, transfer pricing, double handling charges, and avoidable costs that are ultimately passed to the average Nigerian consumers”.

But due to pressure on the naira, the CBN on Thursday softened the restriction allowing importers to open bills of collection in favour of agents and third parties to import goods.