The Nigerian Naira drops again just when the currency was beginning to gain stability. As at Friday 29th July, the Naira was being exchanged for a dollar at N380 in the Lagos Parallel market.
The new week opened with the Naira falling to N381, on Monday, August 1st and the fall continued. As at Wednesday, 3rd August, parallel marketers traded at N390 per dollar.
The inconsistency in Naira value has been persistent for a while now as the local currency, at both the parallel and interbank forex markets, now appears very inferior to foreign currencies especially the most used U.S dollars.
Economic and financial experts say that inadequate forex liquidity at the interbank market was taking a toll on the parallel market and Naira Analysts predict a continuous fall of the currency this week due to the scarcity of dollar supply.The inconsistency in Naira value has been persistent for a while now as the local currency, at both the parallel and interbank forex markets, now appears very inferior to foreign currencies especially the most used U.S dollars.
This is also due to the fact that most foreign investors have be sidelined until the Nigerian economy shows signs of recovering from the impact of currency controls. Meanwhile, the Central Bank of Nigeria has asked for quotes of $5m each from currency traders on Wednesday as it sold the U.S currency to boost dollar liquidity and support the Naira.
According to a currency analyst at Ecobank Nigeria, Mr. Kunle Ezun, the market still lacks enough liquidity and more work is needed to boost liquidity. Also, the current rate is a measure of the amount of dollar liquidity at the interbank market and he is positive that the market will improve in the coming months and the value of Naira will appreciate.