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Naira Tumbles Further As Forex Scarcity Bites Harder

Ololade Omosan-Agie

The naira has continued to tumble against the dollar, pounds and Euro at the parallel market as foreign exchange scarcity continues to bite hard on the economy.

The naira crashed to N503 against the dollar from N502 on Monday, while the pounds rose to N717 from N715 traded last week.

The Euro equally rose to N608 from N607 naira at the parallel market.

The development is coming few weeks after the Central Bank of Nigeria devalued the official rate of the naira to trade close to the NAFEX rate.

With naira trading at N410 at the official rate, the currency has tumbled 33.9 per cent between 2020 and 2021 May.

This is happening despite the apex bank’s defence measures to protect the naira.

The Central Bank of Nigeria had in March 2020 adjusted the official rate of the naira by 17.5% to N360 from N306 per dollar.

The apex bank subsequently devalued the official rate to N379.

Dollar crunch has hit the economy as the Covid-19 pandemic worsened the situation for investors.

The Central Bank last year adjusted its Diaspora remittance policy to induce more remittances.

Nigerians are now allowed to receive remittances in foreign currencies particularly dollar.

The CBN is also paying N5 incentive to recipients of foreign exchange remittances; a policy it said has boosted remittances.

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