ALARMING: Naira Now N472 To Dollar

The Naira fell further on Tuesday to trade at N472 to a dollar at the parallel market as foreign exchange scarcity persisted.

The exchange rate was N440/$ in the parallel market in June, and operators have continued to demand for the immediate unification of the multiple exchange rates in the country.

The Senior Partner, Regulatory and Technology, Stransact Partners, Eben Joels, expressed concern that the gap between the various exchange rates operating in Nigeria created arbitrage opportunities for highly connected individuals.

Joels said, “Some people are cleaning out of this situation. The spread between the black market and the official market is back to about N100 on a dollar.

“It is not that rate that is the issue right now. We need to move to a single unified exchange rate. For all you know, the naira may be underpriced artificially because of the quest to defend the naira.

“Using purchasing power parity, I believe the naira is underpriced and the so-called need to defend the naira by operating several tiers of official exchange rate is part of the systematic theft of national resources going on as we speak.”

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