The naira yesterday exchanged at
N345 to the dollar in the parallel market. The exchange rate volatility
worsened thereby forcing the Central Bank of Nigeria (CBN) to devalue the
official exchange rate to narrow the gap between it and the parallel market.
The local currency eased 1.47 per cent from Friday’s close of 340
to the dollar, while the official rate remained at 197.50 to the dollar at the
close of trading yesterday.
Traders said the black market rate had slipped as Nigerians with
school and medical bills to pay abroad anticipated the CBN would stop
allocating currency for such payments. The bank has not denied or confirmed any
such plans.
Tumbling global oil prices have battered Nigeria’s crude exporter,
with foreign exchange reserves down to an 11-year low at $27.85 billion by
February 11.
Nigeria’s government is concerned that further depreciation will
hurt poor Nigerians, but the bank’s refusal to revise the pegged exchange rate
has widened a chasm between official rates and the parallel market.