Naira nears alarming N1,000/$ per dollar mark in street trading as dollar supply declines

By Sodiq Adelakun

The Nigerian naira continued its downward spiral, inching closer to the alarming 1000-per-dollar mark in street trading.

The central bank’s reluctance to supply dollars to the market has only exacerbated the panic. Traders in Abuja reported the dollar at 998 naira, while in Lagos, it was being exchanged at around 990.

The scarcity of dollars has become so severe that finding $1,000 to purchase is nearly impossible.

The parallel-market rate of the currency is now approximately 29 per cent weaker than the official exchange rate.

The central bank’s lack of intervention this month has only accelerated the naira’s decline, which began in September when it was valued at around 900 per dollar.

Companies in need of foreign currency for imports are now joined by ordinary citizens who fear further depreciation of the naira in their scramble to buy dollars.

The central bank’s rate-setting meeting, originally scheduled for September 25-26, has been postponed. With the resignation of the acting governor and four deputy governors, there is now a policy-making void at the top.