UNBELIEVABLE!!! Naira To Dollar Is Now N1700/$ At Parallel Market

UNBELIEVABLE!!! Naira To Dollar Is Now N1700/$ At Parallel Market—-The naira yesterday exchanged at N1,700 to dollar at the parallel market. It exchanged at N1,640 to dollar on at the weekend, representing N60 per dollar depreciation.

At the Nigerian Autonomous Foreign Exchange Market (NAFEM)- the official market, the naira traded at N1,598 to dollar. The rate represents 3.94 per cent depreciation against US Dollar in the NAFEM Window.

The local currency has continued to depreciate at both official and parallel markets over persistent dollar scarcity.

The CBN last week directed that all authorized dealers to pay Personal and Business Travel, allowances (PTA/BTA) to their customers through electronic channels only, including debit or credit cards instead of cash.

“In line with the Bank’s commitment to ensure transparency and stability in the foreign exchange market and avoid foreign exchange malpractices, All Authorized Dealer Banks shall henceforth effect payout of PTA/BTA through electronic channels only, including debit or credit cards. For the avoidance of doubt, payment of PTA/BTA by cash is no longer permitted,” the bank said.

Importers are finding it increasingly difficult to secure the necessary funds from the official FX market and black market.

Legitimate needs driving the demand include Form A applications for Business Travel Allowance (BTA), Personal Travel Allowance (PTA), school fees, and medical fees. Small and Medium Enterprises (SMEs) are also grappling with the scarcity, as highlighted by the use of Form Q.

“The problem is that dollars are scarce in the market. People are not bringing dollars and demand is so high that is why the price is going up,” a street trader told Business Day on Tuesday morning.

Former Executive Director, Keystone Bank Limited, Richard Obire advised that Nigeria’s heavy and skewed outward-oriented consumption of goods and services as seen in decades of long substantial bills for food and energy imports should be reversed to save the naira.

Also, the massive corruption-driven capital outflows which in turn severely damages Nigeria’s capacity to produce at scale that will enable the country to fully engage its large population to create widespread prosperity works against the naira.

On ways to strengthen the naira, he advised that in the short-term, there is  need to find non-market damaging  ways to increase the supply of hard currencies and reducing the demand for same.

He said that insecurity hampering food production needs to be tackled with a sense of urgency and effectiveness.