Naira continues hard fall

The Nigerian naira hits a new record low on the parallel market after the expectations that dollar scarcity is going to get worse.



 According to traders free fall of naira was caused because of several speculations that the central bank would soon stop foreign currency sales to pay for health and education abroad.

The naira was said to be in a range of 347 to 352 against the dollar on the parallel market, as demand for dollars surged, weakening from 345 on Monday, traders said.

Meanwhile, the central bank left its formal rate unchanged at 197 naira to the dollar on its interbank window.

Aminu Gwadabe, head of an association of bureau de change operators, said: “ Most individuals who sell to us are no longer willing, but demand is piling up. ”

Last month, the central bank prohibited dollar sales to retail bureaux de change, sending the naira to record lows on the parallel market, and later stopped daily sales to the interbank market.

President Muhammadu Buhari recently announced that his administration will not devalue the naira. The leader of the country stated that devaluing the naira would not confer any benefit on the citizens.