Naira Drops to N452/$1, As Nigeria’s Foreign Debt Rises

On Wednesday, at the parallel market, the dollar exchanged at 452 naira, as Nigeria’s foreign debts continue to rise.

Following the one month suspension of foreign exchange activities, that was brought about by the COVID-19, the Central Bank of Nigeria resumed foreign exchange sales at the end of April as they opened to commercial banks, to be made accessible to customers wishing to pay school fees, and businesses making essential imports needed to revamp economic activities across the country.

The suspension of international flights due to the pandemic has greatly affected forex. And to confirm that, the President, Association of Bureaux De Change Operators of Nigeria, Alhaji Aminu Gwadabe, said the suspension had no doubt caused speculation, volatility and spikes in the market.

Alhaji Aminu Gwadabe of the BDC.

He said, “Speculators are taking advantage of the fact that the major source of foreign currency liquidity is now foreign debt not petro dollars.

“The CBN and the presidential task force need to extend essential services to BDCs to checkmate the unfortunate behaviours of speculators to save our local currency.

“Our economy is mostly dependent on imported textiles, refine oil, food, and medicals, among others.

“There is also a need to look beyond traditional sources of foreign inflows of currency liquidity to more germane sources like diaspora remittances and backward integration.”

He added, “The parallel market rate has jumped to N452/$ today (Wednesday) and the trajectory, going forward, is worrisome and disturbing except the BDCs are returned to essential services.”

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