Exchange rate: Naira Depreciates Against the Dollar

The naira has tumbled after losing ground against the dollar after the CBN supported the crackdown against black market traders by the DSS.

*Photo used for illustrative purpose*
The Naira on Tuesday weakened against the dollar few hours after the CBN maintained its benchmark interest rate and endorsed the crackdown on parallel market traders by security operatives.
It lost N5 to exchange at N470 to the dollar at the parallel market from N465 it traded on Monday, while the Pound Sterling and the Euro closed at N565 and N495, respectively.
At the Bureau De Change window, the naira was sold at N390, CBN controlled rate, while the Pound Sterling and the Euro closed at N562 and N500, respectively.
Trading at the interbank market showed that the naira remained stable at N305.00 to a dollar.
The CBN rose from its bi-monthly Monetary Policy Committee meeting, retaining the Monetary Policy Ratio at 14 per cent alongside other policy parameters.
The apex bank also charged security agents to sustain their checks on the activities of illegal foreign exchange operators in order to bring sanity to that segment of the market.
The apex bank said, “The Committee reiterates that the extant foreign exchange regulation outlaws the trafficking of currency on the streets as some unlicensed operators currently do.”
Meanwhile, a currency trader, who spoke on condition of anonymity, said that the raid on the market by security agents had forced them to go underground.
He noted that they still enjoy the patronage of their customers who understand their modus operandi.

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