With the recent economic instability, Naira has further devalued against dollar at N350 to $1 at the parallel market on Monday, February 16, 2016 thereby depreciating by 2% less than 2 weeks.
The Naira depreciation percentage as of Monday, February 3, 2016 was recorded at 9% but has increased by 2% to 11% as today (February 16,2016).
As of Friday, February 12, 2016 the Naira was recorded at N338 against $1 even as the official exchange rate by CBN is at N197 to $1 on its interbank window.
The continuous depreciation of Naira against major world currencies has been linked to the rising request for forex by importers who have debt obligations overseas.
Aminu Gwadabe, Acting President, Association of Bureau De Change Operators stated that the people are hoarding the dollar because they believe it would beyond N400 to $1.
“We have legitimate demand from importers. However, people are also hoarding forex because they feel it may go beyond 400. Except there is a deliberate act to curb the activities of speculators, things may get worse," he said
“The current naira-dollar exchange rate is artificial; it is as a result of the negative perception about the naira, and the fear the naira may be devalued.”
The Naira which has been on a continuous fall for months is a setback for the Nigerian financial market as well as Nigerians.