Naira trades for N550 against dollar

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The naira closed at a record low of N550 against the dollar in the black market as the ban on Bureau de Change Operators (BDC) from accessing the Central Bank of Nigeria (CBN) weekly intervention is biting hard on the currency.

The naira opened the Monday session at N545 against the dollar, but fell 0.9 per cent to N550 at the close of trade, according to figures from black market operators.

At the Investors’ and Exporter Window, the naira which opened at N412.46 per dollar devalued by 29 kobo to close at N412.75.

Nigeria’s spot naira rate is overvalued by up to 10 per cent, Central Bank Governor, Godwin Emefiele told investors, Reuters quoted sources familiar with the meeting in June this year.

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The official rate at the CBN website also shed some kobo to N410.50 on Monday.

In July, the apex bank banned BDCs from accessing its weekly dollar intervention aimed at settling micro demands.

BDC operator at Bani Mbaka Bureau De Change in Zone 4, Abuja said that the naira will continue to lose value at the unofficial market as long as the ban is in place.

Auwal, a dealer at Zone 4 in Abuja said the demand for foreign exchange is excessively high at the market, but there is only a few dollars to settle the demands.

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