June 19, (THEWILL) – The Naira suffered the worst bashing in known records as it dipped to an all-time low of N770.38/$1 at the I&E window Monday.
This represents a 12.2 percent depreciation from the N686.90 the local currency closed on Friday, June 16; or 63.5 percent drop from the pre-June 14 N472/$ — before the Naira was floated.
By this development, the much-sought convergence of the multiple forex windows has been achieved and surpassed as the Naira closed N750.50 at the parallel market, also known as black market, Monday.
Black market operators in Lagos who spoke with THEWILL Monday evening expressed concern that the trend might drive them out of business, if the Naira continues to lose value at the ‘official market’.
A black market operator at the NAHCO section of the Murtala Muhammed International Airport, Ikeja, who would not want to be quoted in media reports, said they sold the dollar between N750 and N760 on Monday.
“The business is becoming something else; we pray this exchange rate that is threatening our work does not continue,” the Kano-born currency dealer said on telephone.
Another black market operator at the premises of Access Bank branch on Isheri Road, Ikeja, who also spoke on point of anonymity, confirmed that their business is being threatened by the recent drop in the value of the Naira at the I&E window.
In a chat with THEWILL Monday, the middle-aged currency trader said they are afraid of being thrown out of their jobs “by the government and the central bank” because the rates are closing fast.
In the past few days, Nigeria’s foreign exchange (FX) market has witnessed significant events following the implementation of reforms aimed at repositioning the country’s economy.
On June 14, the regulator announced the unification of all segments of Nigeria’s FX market, and the floating of the local currency.
The policy effectively collapsed all FX windows into the investors and exporters (I&E) window.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
