Naira crumbles to N1,100/$ at parallel market

Naira once again fell to an all time low of N1,100 to dollar at the parallel market due to persisted dollar scarcity in the country.

The Central Bank of Nigeria (CBN) last week said it would occasionally intervene to boost liquidity in the forex market, and stabilise the local currency.

Dealers and financial experts said the volatility in the market was a fallout of acute dollar scarcity and speculative activities by illegal forex dealers.

Dr. Uju Ogubunka, the former Registrar, Chartered Institute of Bankers of Nigeria (CIBN), explained that Nigeria’s trade balance had been weakened by its inability to produce and earn forex, a process that has contributed to dollar scarcity.

According to him, Nigeria must find new ways to boost production to earn more dollars and boost foreign reserves. Ogubunka, who is also the President, Bank Customers Association of Nigeria, said aside boosting production, there was the need to tackle insecurity to allow farmers go to their farms.

He said such effort would help increase crop yields and bring more dollar earnings for the economy, adding that that would ,firm up the local currency.

He added that insecurity and the political uncertainty are delaying several corporate investment decisions that would have brought in more dollars to the economy.