Naira slumps as speculations, debt weaken market

The dollar exchanged for N452 at the parallel market on Wednesday over speculations by operators in the market and the effect of the country’s rising foreign debt.

The Central Bank of Nigeria resumed foreign exchange sales in April ending to commercial banks, to be made accessible to customers wishing to pay school fees, and businesses making essential imports needed to revamp economic activities across the country.

This followed its one-month forex sales suspension at the onset of the lockdown occasioned by the COVID-19 pandemic.

The continued ban placed on flights in the country by the Federal Government had further affected access to forex by Bureau de Change operators, but the regulator had assured them forex would be extended to them when flights resume.

The President, Association of Bureaux De Change Operators of Nigeria, Alhaji Aminu Gwadabe, said the suspension had no doubt caused speculation, volatility and spikes in the market.

– Punch