On
Friday the 10th of July, 2015, the Naira nosedived against the U.S.
Dollar by 2.1% after a government liquidity injection into the economy to
enable states that are cash-strapped clear their funding issues. As a result of
this, a new record has been set, putting the Naira at N240 to $1 on the
parallel market. This is regardless of the fact that the official exchange rate
in the inter-bank market was N196.95 to $1.
According to the President of Nigeria Bureau De Change Association,
Aminu Gwadabe as reported by Reuters,
there was an increase in demand on Friday as individuals tried to
convert their Naira to Dollars. He told Reuters that “There is a lot of demand
with the recent injection of cash by the government. Part of the funds are
being converted to Dollars”. People are exchanging Naira for Dollars for the
fear of further devaluation in the value of the Naira. From all indications,
Dollar shortage is not expected to be over anytime soon.
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Nose-dive in N/$
exchange rate
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Investors
are apprehensive about the disparity between the inter-bank market rate and the
black market rate which is the reality, as the Naira continuously declines against
the Dollar.
Two
weeks ago, the central bank placed a restriction on the access to Dollar on the
official interbank market. This has worsened the perception of investors of the
policy. Nigeria is an import dependent economy and Dollar is one the major
currencies of exchange all over the world. The instability in the exchange rate
of Naira to Dollar is having adverse effects on the Nigerian citizenry, prices
of commodities have shot up. We have to part with more Naira to get the
equivalent in Dollars than we used to, and the common man suffers the
most.
When
there is a hike in prices of goods and services, individual incomes usually
stay the same, thereby putting a strain on the pockets of people. The
government of the day owes it to Nigerians to put measures in place to stem the
tide and strengthen the Naira and it needs to act fast.
Nigeria
is a country blessed with lots of natural resources yet, we wallow in poverty
and lack. The measures adopted by the
new government are yet to impact the lives of the common Nigerian and until it
does, the situation of the common man remains dire.
CIT
Bureau De Change, one of our subsidiaries is a licensed Bureau De Change company
that operates in the heart of Lagos Island in Lagos, Southwest Nigeria. We are
positioned to bridge the widening gap between the demand and supply problems
currently beleaguering the foreign exchange market in Nigeria. For all your
foreign exchange payment requirements, you can give us a call today on these
numbers;
+234
1-4547432, +234 7058993528 or click the
link below for further inquiries.
Thank
you.
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