The naira fell to a new all-time low of 470 to the United Stated dollar on the parallel market on Wednesday – reflecting its biggest fall since the Central Bank of Nigeria adopted a flexible foreign exchange regime.
On Tuesday, the local currency traded at 452 to the dollar, as against the 445 it closed against the greenback on Monday.
Speaking on the development to The Punch, the President, Association of Bureau De Change Operators of Nigeria, Alhaji Aminu Gwadabe said:
“The rate is N472 to the dollar as we await the kick-off of the distribution of dollars to the BDCs by Travelex on Friday.
“As we speak, no bank is dispensing dollars to the BDCs. The BDCs’ accounts were debited by some banks since Monday and they are not able to pay any of the BDCs so far debited by them. This is really sending a bad signal in the market.”
Traders and analysts said dollar liquidity remained a major challenge in the market amid surging demand pressure on the greenback by parents paying schools fees of their children studying overseas as well as travellers.