BDCs seek urgent reform as Naira depreciates to N1065/$

The nation’s currency, the naira plunged the lowest in record on Wednesday at the parallel market, with the local currency opening for trading on the street market to an all-time low of N1065 to the dollar at the unofficial window of the forex market.

The local currency was reported to have closed on the unofficial window at N1060 to the dollar on Tuesday, with the dollar shortage driving the rapid depreciation of the naira at all levels.

The naira also weakened by 8.9 percent to N848.12 to the dollar in the official I&E forex market on Tuesday, according to data from FMDQ.

Trades in the foreign exchange market were executed within the range of N700 to N981 per dollar, according to an investment note by Lagos-based investment banking firm Chapel Hill. The value of the dollar traded jumped 2.12 times to $133 million, the firm said.

The Central Bank of Nigeria (CBN) eased foreign exchange controls in mid-June after President Bola Tinubu criticised monetary policy measures and pledged an end to the nation’s multiple exchange rate regime.

The Chairman of the Association of Bureau de Charge Operators in Nigeria (ABCON), Aminu Gwadabe, had in a chat with an agency attributed the rapid slide in the value of the naira to huge liquidity driving up demand for unavailable dollars in the market.