Naira Faces Further Pressure From Dollar

The naira is seen weakening further against the United States dollar amid a crackdown in the parallel market currency traders and the persistent scarcity of the greenback.

Reuters reported that foreign exchange demand by small businesses was set to surge ahead of holiday season sales.

The local currency fell 2.08 percent week-on-week on Thursday to 480 to the dollar on the parallel market against 470 a dollar last week, while it was quoted by commercial lenders at 314.80 a dollar on the interbank market.

“The consistent clampdown on black market operators by security agents has driven some currency retailers underground, putting more pressure on available hard currency,” one dealer said.

I just hope the dollar/naira saga won't get worse this festive period.