The naira hit another record low of 241 against the dollar at the parallel market on Monday as the Central Bank of Nigeria’s restrictions on foreign exchange sale fuelled unofficial trade in dollars, Reuters reported.

The ban on importers from accessing the Nigerian foreign exchange markets for the importation of 41 items had led to the volatility of the naira-dollar exchange rate at the black market.

Since June 23 when the new forex rule became operational, the naira has fallen by 10.5 per cent from 218 to 241 against the greenback.

Foreign exchange dealers said the artificial scarcity of the United States currency still pervaded the market.

The new forex rule had led to huge demand at the parallel market, causing dealers to hoard the dollar in anticipation of further fall in the naira

Economic analysts had said the CBN needed to devalue the naira to allow the local currency achieve an equilibrium price against the dollar.

The central bank had however said it would not be focusing on the thinly-traded parallel market when determining the exchange rate, adding that people preferred to use the unofficial market for undocumented transactions.

Foreign investors had been on the sideline, waiting for the CBN to devalue the naira before investing in naira-denominated assets.

Local and foreign analysts had predicted that the naira might hit 250 against the dollar at the parallel market any time soon if the artificial scarcity trend continued.

The central bank appears to be in a fix as the spread between the official and parallel market continues to widen by the day.

Meanwhile, stocks fell to a more than three-month low and the naira on Monday, Reuters reported.

The local bourse, which has the second-biggest weighting after Kuwait on the MSCI frontier market index, dropped for the ninth consecutive day as investors shed banking, consumer and oil shares.

Source: http://www.punchng.com/business/money/naira-drops-to-241-against-dollar/

cc:lalasticlala, Afam4eva, OAM4J, Ikenna351

hit like if u still believe in this government and hit share if u think we have been short-changed

$1+one chance=N1

#1 wil b equal to 1$ in #thefullnessoftime

The CBN should go ahead and devalue the naira. The current measures to prop up the naira is obviously not working and devaluation is the lesser evil. It may seem painful at first but is better in the short and medium term. As an import dependent country, the scramble for the dollar will continue no matter the curbs the CBN puts in place.
Meanwhile as FTC, I dedicate this space to all to all those that will comment after me. You all are deeply appreciated. Intelligence is the ultimate beauty

Otio!

Is the Black market the route for genuine dollar needs?

Is it the govt's fault that unscrupulous dealers are hoarding dollars in order to create artificial scarcity?

Don't Blame PMB plz... Gravity and Naira seem to have developed a new affection for each other.

If it likes, let it reach N500 naira. Wetin concern gorimakpa with barbar?
Nigerians asked for it when they were voting a dulllard into power. Imagine someone without SSCE, F9 in maths, is now the finance minister in Nigeria.
The dulllard believes the economy is run by issuing empty orders that $1 should exchange for N160, and it will just happen because people are scared of him? Nigerians got what they deserve.

OreMI22:
If it likes, let it reach N500 naira. Wetin concern gorimakpa with barbar?
Nigerians asked for it when they were voting a dulllard into power. Imagine someone without SSCE, F9 in maths, is now the finance minister in Nigeria.
Serves Nigerians right.

You will have to learn to live with your bitterness for four years. Baba buhari has come to stay.

still waiting for #1 =$1

Okay, dis is what corruption can cause.

Na b00hari cause am.... He tink say to rule naija na to command his cattle..... Very clueless in all ramification

Repayments for the years of the locust.
THe price being paid mismanagement for mismanagement .
Oil boom, no benefit, improvements or savings.The naira would have to be allowed to float (devalued) or Nigerian would have to curb their taste for imported goods and luxuries.

Buhari must hear this...

Buhari why nah And i voted for you and now you want to put me and other nigerians to shame.