The naira, which rose to 180 against the dollar shortly after the inauguration of President Muhammadu Buhari about a month ago, has fallen to 222 at the parallel market due to a huge demand for dollars by importers and investors, the Punch reports.
According to the report, increasing business activities have made importers and investors to move their foreign exchange demands to the parallel market, putting pressure on the naira at the segment, it was learnt on Tuesday.
Analysts and foreign exchange dealers said the future of the naira looked bleak, at least at the parallel market.”
The fall in the prices of crude oil in the international market has meant that Nigerian who depend largely on oil sales for its foreign exchange has less of the valued item to contend with forcing the Central Bank of Nigeria reach deep into the countries foreign reserves bid to defend the Naira.
At the interbank forex market, where the central bank intervenes regularly to defend the currency, the naira closed at 199 against the dollar on Tuesday, data from the FMDQ OTC website showed.
The external reserves fell to $29.03bn on June 22, from $29.8bn on May 18, data from the CBN website showed.
