By Babajide Komolafe
LAGOS — The naira, yesterday, suffered its biggest daily depreciation against the dollar as it exchanged for N345 to a dollar in the parallel market.
This represents N20 depreciation when compared with the closing exchange rate of N325 per dollar in the market on Friday.
But the naira was relatively stable at the official interbank foreign exchange market as the interbank rate stood at N197.47 per dollar at the close of business, yesterday. The naira also depreciated by N45 against the British pound as the parallel market exchange rate rose to N485 per pound, yesterday, from N340 on Friday.
Bureaux de Change sources, who confirmed the development to Vanguard, attributed the sharp depreciation to persistent scarcity of the dollar and pound sterling in the market.
According to an Abuja-based BDC operator, who spoke on condition of anonymity, “the market is experiencing huge demand for dollars but there is no supply. Even those who have dollars are not willing to sell. The way things are going, the rate might reach N350 per dollar before it stabilises.”
This development widened the gap between the interbank rate and the parallel market rate to N147.53 per dollar from N127.53 per dollar last week.
The naira has been on steady decline since January 12, 2016, when the Central Bank of Nigeria, CBN, stopped weekly dollar sale to BDCs.
Prior to this action, the naira traded at N265 per dollar in the parallel market. Consequently, the naira has depreciated by N80 in the parallel market since the CBN took the action. The steady depreciation was also aggravated by inability of the CBN to meet foreign exchange demand. Vanguard investigations reveal that the parallel market is being bedevilled by demand for foreign exchange from importers of the 41 items excluded from the official market by CBN last year as well as importers of items not excluded from the official market.
http://www.vanguardngr.com/2016/02/naira-falls-to-n345-in-parallel-market-2/

We need God's hand in this situation. it is getting out of hand.

Buhari said $1 to N1000 and people were screaming $1 to N1!

Since we are not producing naira is operated.

This is the weakest argument I have heard from many people. Ghana did it and cedi still continue to fall. All u need is call re denomination of currency. But it will not solve any problem as our demand for dollars grows by day.

jcmaiah:
Buhari said $1 to N1000 and people were screaming $1 to N1!

Has anyone noticed that each passing day the naira fall by atleast N10?

Juve4:
We need God's hand in this situation. it is getting out of hand.

We don't need God's hand. This is what we need.

they are also positive sides to these. the major reason why this is bad for us is simply becos we are import dependent.

Koleman:
they are also positive sides to these. the major reason why this is bad for us is simply becos we are import dependent.

I need to buy some equipements that could not be found in Nigeria for my projects, but with this astronomically galloping naira I do not know what I will do again!!!

sinkhole:
I need to buy some equipements that could not be found in Nigeria for my projects, but with this astronomically galloping naira I do not know what I will do again!!!

you simply have no choice. we are simply import dependent

Naira likely to reach 400naira before the end of this month. I have said it times without number that the law of demand & supply has huge impact on the current exchange rate but some zombies are there shouting its GEJ. Those that are outside the country & earn in dollars are not ready to send money home via legal means because of fraudulent activities of our commercial bank. if you need dollar for even medical purpose, banks wont sell dollars to you but they will be delighted to pay you 197/$1 sent to your Nigeria card or WU. Naira is already devalued but CBN are still fooling the zombies. those screaming 'buy made in Nigeria' are mostly people that has no knowledge about business & economy. The prices of everything including ordinary satchet water is on the high side.

With the way naira is falling we may discover amadioha+ Zeus+ sango thunder.

This is unbelievable.
Our economic team is utterly useless.

tunwumi:
This is the weakest argument I have heard from many people. Ghana did it and cedi still continue to fall. All u need is call re denomination of currency. But it will not solve any problem as our demand for dollars grows by day.

I have said it times without number that people should stop using the Ghana cedis case as a yard stick. They even have little or no idea as to what happened to Ghana. They just jumped on the re denomination. Re denomination was the best thing for Ghana. The problem was maintaining fiscal discipline and sound macro economic policies. Today the cedi has strengthened cos of the policies put in place then . Changed naira last week to cedis.. Bought a juice pack worth 300 naira and i actually got it for a 1000 equivalent.

Choi!!!!!! Buhari don kill us ooohhh!!!!!!!!