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The Nigerian Naira has continued to depreciate, with the exchange rate falling to N1,435 per dollar in the parallel market and to N1,421.06 per dollar in the Nigerian Foreign Exchange Market (NAFEM).
This decline is attributed to the re-emergence of speculation and hoarding, despite the Central Bank of Nigeria’s (CBN) efforts to intervene in the retail segment of the forex market.
The CBN resumed dollar sales to Bureaux De Change (BDCs) in February, but the disbursement process has been slow, leading to delays in receiving the sold dollars.
Consequently, some BDCs have requested refunds for their Naira payments, as the uncertainty in the forex market and the slow pace of intervention by the CBN have led to dissatisfaction among operators.
BDC operators have reported that the CBN’s intervention is too slow and that it takes too long to collect the allocated dollars.
This has led to speculation and hoarding, as people are uncertain about the frequency and volume of future interventions by the CBN.
The margin between the parallel market and NAFEM rates has widened to N13.94 per dollar, indicating a significant gap in the exchange rates across different segments of the forex market.
Efforts to obtain a response from the CBN’s Director of Corporate Communication, Mrs Hakama Sidi-Ali, were unsuccessful, with calls, SMS, and WhatsApp messages not being answered.
This lack of communication from the CBN further fuels speculation and uncertainty in the forex market, contributing to the depreciation of the Naira.
As the situation unfolds, it remains to be seen how the CBN will address the growing concerns and challenges faced by BDCs and the broader forex market.
The ongoing depreciation of the Naira highlights the need for a more robust and transparent intervention strategy to stabilize the currency and restore confidence in the forex market.
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