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Naira Falls To N710 Per Dollar

Naira Falls To N710 Per Dollar

Naira Falls To N710 Per Dollar

Naira Falls To N710 Per Dollar

Despite starting the day at N675 to $1, the Naira to US dollar exchange rate on Wednesday dropped below the N710 to $1 mark on the black market.

ALSO, READ US Dollar To Naira Exchange Rate For 16th July 2022

Over the past two weeks, there has been significant pressure on the Naira, which has dropped from an average of N618 to the dollar that was seen two weeks ago. The currency may reach N700/$1 before the week is up, according to prior reports from Daily Sun.

ALSO, READ How To Report Your Bank To CBN In Cases Of Poor Services

In a similar vein, some bank customers holding foreign exchange (FX) in their domestic accounts disclosed that limited liquidity prevented them from withdrawing money from the bank.

Naira Falls To N710 Per Dollar

It will be recalled that the Central Bank of Nigeria (CBN) had a year ago banned the sale of FX to BDCs citing the illegal sale as the reason behind its decision. At that time, the exchange rate was about N501/$1 with $33 billion in the country’s FX reserves.
Prior to the ban, BDC operators were a major black market, providing exchange rate support to those who could not formally access foreign currencies directly from the CBN.
Also, in an attempt to further restrict the flow of forex at the parallel market, the apex bank threatened to arrest and prosecute Nigerians using naira to buy dollars last week.
The CBN Governor, Godwin Emefiele, during the recent Monetary Policy Committee (MPC) meeting in Lagos, said, “For those taking money from banks to buy dollars, it is illegal to do so. If the security agencies hold you, you will know the implication of that”.

Naira Falls To N710 Per Dollar

Reacting to the current development, BDCs in Lagos as well as other economic experts, criticized the CBN for failing to initiate policies that will help stabilize the country’s currency value in the forex market.
A BDC operator in Lagos Island who craved for anonymity, spoke to Daily Sun yesterday, and said, “At this rate, I just think the dollar might get to N1000 because the CBN who did all it could in the name of illegality has not been able to come up with a solution to supply FX”
Another operator said, “The CBN ought to answer Nigerians on how it has failed to stabilize our own Naira. If they thought that they had saved Nigerians from us (BDCs), they have just started multiplying the suffering of the masses, especially those who travel”.

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