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Naira Falls To N540 Amidst Dollar Shortage

Ololade Omosan-Agie

The naira has traded its worst in years in the unofficial market after the Central Bank of Nigeria said it is not worried about naira valuation.

The naira in the unofficial market controlled by the different Bureau de Change operators traded N540 per dollar. It had traded N532 to the dollar before the apex bank comment.

This is N30 devaluation against the dollar between September 9, 2021 and August 10 when it traded N510.

The naira also slumped against the British pounds trading N740 which is down from N732 traded on Monday and N703 traded on August 10.

This is coming after the Director of Monetary Policy, Hassan Mahmud, said on Tuesday that the bank was not worried about the devaluation of the naira.

“We are not really bothered much about valuation. What we are worried about is the supply side and the confidence in the system,” Mahmud had said during a virtual investor conference.

Dollar bills have become so scarce in the market due to the recent policy of the CBN to channel forex from the unofficial market to banks.

Since March 2020, CBN has devalued the naira thrice on dollar scarcity which was worsened by Covid-19 induced oil price crash.

CBN Governor, Godwin Emefiele, in June devalued the official rate of the naira to N410 from N379 per US dollar.

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