Naira depreciates further at the parallel market

Posted by News Express | 24 October 2015 | 3,131 times

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The naira on Friday depreciated further against the dollar when it lost N0.5 to the dollar as it exchanged for N225.5 as against the previous N225 at the parallel market

Meanwhile, the official rate at the interbank window remained at N197.

The News Agency of Nigeria (NAN) reports that in spite of the bi-weekly sale of forex to operators of Bureau de Change (BDC) by the Central Bank of Nigeria (CBN), the naira continued to depreciate.

Traders at the parallel market said the continued demand for dollar by importers was exerting pressure on the currency of the largest economy in Africa.

Prof. Sheriffadeen Tella of the Department of Economics, Olabisi Onabanjo University, Ago Iwoye, Ogun state, said naira could not afford to behave otherwise since the country’s economy was not productive.

“We are not producing, only a producing economy can press up its exchange rate.”

According to him, Nigeria should continue to introduce more control on its exchange rate until the forces of demand and supply lead to its stability.

“There must be some restriction until we start making progress.” (NAN)

•Photo shows Naira.

Source: News Express

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