Naira Value Crashes, Dollar Sells For N420

Naira Value Crashes, Dollar Sells For N420

Jayfred Ugo

Jayfred Ugo

On Thursday, the Nigerian economy witnessed a drastic change in the naira, as the exchanged rate fluctuated between N405 and N420 per dollar in the Bureau De Change segment of the market.

The President, Association of Bureaux De Change Operators of Nigeria (ABCON), Aminu Gwadabe, declared that the crude oil price which fell drastically in the international market to as low as $35 per barrel, have now raised presumptions among the BDC operators.

Alhaji Aminu also declared that these speculations in the oil market were not necessary as it will only mastermind the devaluation of the price for oil-producing countries.

Gwadabe said,

”With the fall in oil crude oil prices on Monday, we witnessed a lot of foreign investors portfolio dropping their assets, most especially to convert to cash.

“The movement was as a result of recklessness on the side of the operators when they want to speculate, but there is no reason for such because the Central Bank of Nigeria had continued to maintain support for liquidity to the BDC sub-sector.

”Recently the dollar sold for as high as N400, however, sanity is gradually returning to the sector as it sold for N375 by the close of the day.”

The ABCON president also disclosed in a chat with newsmen that the CBN wants to rescind the licences of some BDCs for various infractions instead they fined over 100 BDCs N5m each for their various offences.

A Bureau De Change operator, who spoke with newsmen disclosed,

”When we woke up on Monday, the exchange was still about N360, but all of a sudden, because of the fall in crude oil price, people were panicky.

“Today, we still sold for up to N420 but the price was fluctuating.”

The Apex Bank in Nigeria (CBN) has maintained stability at N360 in more than three years now.

Happenings Media