Naira in free fall, slumps to 495 against dollar
The naira fell to a new record low against the United States dollar on Thursday, trading near 500/$1 at the parallel foreign exchange market.
The Nigerian unit, which has depreciated more than seven per cent since the start of November, slumped to 495 against the greenback on Thursday from the previous low of 487/$1 a day earlier.
It was, however, stable at the Investors & Exporters’ FX Window, closing at 393.25 against the dollar as turnover rose to $210.25m from $52.09m on Wednesday.
The naira also crashed against the British pound sterling and the euro on Thursday. The local currency fell to 635 against pound and 580 against the euro from 629/ £1 and 575/ €1 respectively on Wednesday.
The Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, warned speculators this week against creating panic in the Nigerian forex market.
He said the parallel market should not be the basis for determining the value of the naira.
“The foreign exchange rate in Nigeria is determined by the forces of supply and demand in the Nigeria Autonomous Foreign Exchange Market window,” he said during a press briefing at the end of the Monetary Policy Committee meeting on Tuesday.
